Rio Tinto’s plan to repay debt early will see it purchase around US$1.359 billion in outstanding 2017 and 2018 notes.
The miner launched its cash tender offer last week, in an effort to reduce gross debt levels through the repayment of near maturing debt.
It offered to purchase – for cash – its 2 per cent notes and 1.625 per cent note maturing in 2017.
The same offer existed for its Dutch Auction Securities, consisting of 6.5 per cent notes and 2.25 per cent notes maturing in 2018.
It has now purchased around $US1.359 million worth of around US$1.5 billion of these notes.
According to Rio Tinto, “US$339 million in aggregate principal amount of its 2 per cent Notes due 2017 will be purchased at a price of $1,006.91 per US$1,000 principal amount of notes.”
Approximately “US$1.020 billion in aggregate principal amount of its 1.625 per cent Notes due 2017 will be purchased at a price of US$1,005.85 per $1,000 principal amount of notes. The above amounts exclude US$2 million of Any and All Securities that remain subject to the guaranteed delivery procedures described in the Offer to Purchase. The Any and All Securities purchased will be retired and cancelled and no longer remain outstanding.”