Rio to reduce debt by $US3 billion

Rio Tinto has released its June tender offers in an effort to reduce its gross debt by another $US3 billion.

The company has accepted for purchase $US1.25 billion of debt under its ‘maximum tender offer’ and $1.75 billion under its ‘any and all offer’.

Both offers took effect on June 7 2016 and are part of Rio’s ongoing capital management plans.

The ‘any and all offer’ expired on June 13 2016, while the ‘maximum tender offer’ expires on July 5 2016.

The notes for the offers are due between 2020 and 2022, with $487.6 million (3.500 per cent) notes due in 2020; $337.9 million (4.125 per cent) notes and $400.8 million (3.750 per cent) notes due in 2021; and $11.5 million (3.5 per cent) notes and $14.6 million (2.875 per cent) notes due in 2022.

This follows the company buying back $US1.36 billion worth of 2017 and 2018 notes in April this year.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.