Capital/Financing Update • Jun 23, 2017
Capital/Financing Update
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RNS Number : 9578I
Rio Tinto PLC
22 June 2017
Rio Tinto successfully completes $2.5 billion gross debt reduction
Rio Tinto has successfully completed its bond tender and redemption exercises announced on 22 May 2017 and has reduced gross debt by a further $2.5 billion. Since the start of 2016 we have now reduced the nominal value of our outstanding bonds from approximately $21 billion to about $9.5 billion.
The Notes purchased by Rio Tinto Finance (USA) plc and Rio Tinto Finance (USA) Limited in the $1.72 billion redemption notices and the $781 million tender offers are detailed below.
| Title of Security | Issuer and Offeror | CUSIP/ISIN | Principal Amount Purchased(1) |
Consideration | Mechanism | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 9.000% Notes due 2019 | Rio Tinto Finance (USA) Limited | 767201AH9/ US767201AH93 | $1,254,306,000 | $1,130.596876 (2) | redemption | |||||
| 3.500% Notes due 2020 | Rio Tinto Finance (USA) Limited | 767201AK2/ US767201AK23 | $464,876,000 | $1,058.392792 (2) | redemption | |||||
| 4.125% Notes due 2021 | Rio Tinto Finance (USA) Limited | 767201AN6/ US767201AN61 | $144,185,000 | $1,080.05 (3) | tender | |||||
| 3.750% Notes due 2021 | Rio Tinto Finance (USA) Limited | 767201AQ9/ US767201AQ92 | $273,929,000 | $1,066.93 (3) | tender | |||||
| 3.500% Notes due 2022 | Rio Tinto Finance (USA) plc | 76720AAC0/ US76720AAC09 | $231,615,000 | $1,057.76 (3) | tender | |||||
| 2.875% Notes due 2022 | Rio Tinto Finance (USA) plc | 76720AAF3/ US76720AAF30 | $131,089,000 | $1,028.77 (3) | tender |
(1) Settlement of 9.000% Notes due 2019 and 3.500% Notes due 2020 was on 21 June 2017. Settlement of 4.125% Notes due 2021, 3.750% Notes due 2021, 3.500% Notes due 2022 and 2.875% Notes due 2022 was on 7 June 2017.
(2) Per $1,000 principal amount of notes under the redemption notice.
(3) Per $1,000 principal amount of Securities validly tendered and accepted for purchase.
Capitalised terms in this announcement have the same meaning as assigned to them in the Offer to Purchase dated 22 May 2017.
The Notes purchased and redeemed have been retired and cancelled and no longer remain outstanding.
The early redemption costs are expected to reduce underlying earnings by approximately $180 million and cash flow from operating activities by approximately $260 million in the first half of 2017. These reductions will be offset by savings in future periods.
www.riotinto.com
Follow @RioTinto on Twitter
| ### Media Relations, EMEA/Americas Illtud Harri T +44 20 7781 1152 M +44 7920 503 600 David Outhwaite T +44 20 7781 1623 M +44 7787 597 493 David Luff T +44 20 7781 1177 M +44 7780 226 422 ### Investor Relations, EMEA/Americas John Smelt T +44 20 7781 1654 M +44 7879 642 675 David Ovington T +44 20 7781 2051 M +44 7920 010 978 |
### Media Relations, Australia/Asia Ben Mitchell T +61 3 9283 3620 M +61 419 850 212 Anthony Havers T +61 8 9425 8557 M +61 459 847 758 ### Investor Relations, Australia/Asia Natalie Worley T +61 3 9283 3063 M +61 409 210 462 Rachel Storrs T +61 3 9283 3628 M +61 417 401 018 |
| Nick Parkinson T +44 20 7781 1552 M +44 7810 657 556 |
|
| ### Rio Tinto plc 6 St James's Square London SW1Y 4AD United Kingdom T +44 20 7781 2000 Registered in England No. 719885 |
### Rio Tinto Limited 120 Collins Street Melbourne 3000 Australia T +61 3 9283 3333 Registered in Australia ABN 96 004 458 404 |
This information is provided by RNS
The company news service from the London Stock Exchange
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