Rio Tinto has announced that is has priced its Euro cash tender offer as part of its recently announced gross debt reduction plan.
Rio Tinto Finance put out an invitation to non-US holders to sell up €750 million ($1.2 billion) in investor notes at 2 per cent (due for payment by Rio Tinto in 2020) and €500 million in investor notes at 2.875 per cent (due 2024) in return for just under $US850 million in cash.
Of the €750 million notes, €348.34 million was accepted, and of the €500 million notes, €83.3 million was accepted, a total of €431.64 million in aggregate.
Rio Tinto yesterday announced it was planning to sell its 80 per cent stake in the Kestrel coal mine in Queensland for $US2.25 billion ($2.9 billion), the last of its coal assets to be sold off following the proposals to sell the Hail Creek and Valeria mines the week before
In addition to the Euro tender offer, Rio will issue roughly $1.4 billion in redemption notices via four series of US-dollar denominated notes, to be matured in 2021–2022.
The first will be for 4.125 per cent notes due on May 2021; the second for 3.75 per cent notes due September 2021; the third for 3.5 per cent notes due March 2022; and the fourth for 2.875 per cent notes due August 2022.