Rio Tinto begins tender for all $2.5 billion of 5.875% notes due 2013

By Devika Patel

Knoxville, Tenn., Oct. 20 - Rio Tinto Finance (USA) Ltd. said it launched a cash tender offer for its $2.5 billion of 5.875% notes due July 15, 2013. The notes are guaranteed by Rio Tinto plc and Rio Tinto Ltd.

The offer is scheduled to expire at 9 a.m. ET on Oct. 27.

The consideration for each $1,000 of tendered notes will be determined by reference to a fixed spread of 40 basis points over the yield based on the bid-side price of the 1% Treasury due July 15, 2013, as calculated by the dealer managers at 2 p.m. ET on Oct. 26. Holders will also receive accrued interest up to but excluding the payment date.

The offer is subject to certain conditions, including, among other things, the completion of an offering of senior notes.

Morgan Stanley & Co. Inc. (800 624-1808) is the global coordinator and lead dealer manager. Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and HSBC Securities (USA) Inc. are lead dealer managers. ANZ Securities, Inc. and Mitsubishi UFJ Securities (USA), Inc. are co-dealer managers.

D.F. King & Co., Inc. (888 290-6427) is the depositary and information agent.

Rio Tinto is a mining group based in London.

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