Midday Commentary: Rio Tinto's new notes trading better in high-grade secondary market

By Aleesia Forni

Virginia Beach, Va., June 17 - The high-grade secondary market saw Rio Tinto Finance (USA) plc's recent fixed-rate notes trading better on Monday, one trader said.

The company priced an upsized $3 billion offering of senior notes in four parts on Friday.

The $1 billion of 1.375% three-year notes traded 1 basis point better at 95 bps bid, 91 bps offered.

Rio Tinto sold the notes at a spread of Treasuries plus 100 bps.

Meanwhile, the $1.25 billion of 2.25% notes due 2018, which were sold at a spread of Treasuries plus 140 bps, were quoted 2 bps tighter at 137 bps bid, 132 bps offered.

Friday's sale also included a $250 million tranche of two-year floating-rate notes sold at par to yield Libor plus 55 bps and $500 million of three-year floaters priced at par to yield Libor plus 84 bps.

The metals and mining company is based in Melbourne and London.

In other market news, the Markit CDX North American Investment Grade index was 1 bp tighter at a spread of 82 bps at midday.

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