Rio Tinto accepts €431.64 million of notes in tender, sets pricing

New York, March 28 – Rio Tinto plc will accept tenders for €431.64 million of two series of notes and set pricing, according to announcements from the company.

The company will accept €348.34 million of its €750 million of 2% instruments due May 11, 2020 and €83.3 million of its €500 million of 2.875% instruments due Dec. 11, 2024.

For the 2% instruments, the purchase price will be €1,046.74 per €1,000 principal amount while for the 2.875% instruments the price will be €1,152.03 per €1,000 principal amount.

Rio Tinto Finance plc is the issuer for both notes, and Rio Tinto plc and Rio Tinto Ltd. guarantee the debt.

The 2% instruments have first priority, and the 2.875% instruments second priority.

The tender ended at noon ET on March 27.

The tender was announced on March 20.

Rio Tinto said it was offering to buy from holders outside the United States up to $850 million equivalent principal amount of its 2% instruments due 2020 and 2.875% instruments due 2024.

Pricing for the 2% notes was set using an offer yield of negative 0.2%. For the 2.875% notes, the purchase price was set using the 2024 notes interpolated mid-swap rate minus 5 basis points.

The repurchase amount was fixed using $849,892,000 converted into dollars at the foreign exchange rate at pricing on March 28.

Holders will also receive accrued interest on the settlement date.

The dealer managers are Deutsche Bank AG, London Branch (+44 20 7545 8011), HSBC Bank plc (+44 20 7992 6237) and Societe Generale (+33 142 13 32 40).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or riotinto@lucid-is.com).

At the same time as it announced the tender, Rio Tinto also issued redemption notices for $1.4 billion principal amount in four series of outstanding 4.125% notes due May 2021 and 3.75% notes due September 2021 issued by Rio Tinto Finance (USA) Ltd., both to be redeemed on April 19.

The debt-reduction actions are part of the group’s ongoing capital management and follows $10 billion of dollar-denominated note redemptions and repurchases in 2016 and 2017, the company said.

Rio Tinto is a mining group based in London.

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