Rio Tinto pays debt early

Rio Tinto has launched a cash tender for the early repayment of US$1.5 billion for its 2017 and 2018 notes.

The miner is aiming to reduce gross debt levels through the repayment of near maturing debt, today commencing cash tender offers for its outstanding notes.

It is offering to purchase – for cash – its 2% notes and 1.625% note maturing in 2017.

The same offer exists for its Dutch Auction Securities, consisting of 6.5% notes and 2.25% notes maturing in 2018.

Those who accept the Dutch Auction consideration will also receive a US$30 early tender payment.

Following consummation of the offers, the securities purchased in the offers will be retired and cancelled, and will no longer remain outstanding.

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