Rio Tinto provides purchase price for tender offer for 3.75% notes

By William Gullotti

Buffalo, N.Y., Nov. 3 – Rio Tinto Finance (USA) Ltd. announced the purchase price related to its any and all cash tender offer for any and all of the outstanding $1.2 billion 3.75% notes due June 15, 2025 (Cusip: 767201AS5) guaranteed by Rio Tinto plc and Rio Tinto Ltd., according to a press release Wednesday.

With pricing based on the 0.625% U.S. Treasury note due Oct. 15, 2024 and a fixed spread of 25 basis points, the offer price was set at $1,097.32 per $1,000 principal amount, reflecting a reference yield of 0.749%.

The company will also pay accrued interest to but excluding the settlement date.

The offer expired at 5 p.m. ET on Nov. 3.

Tenders via guaranteed delivery procedures are due by 5 p.m. ET on Nov. 5.

Settlement is expected to be on Nov. 5, or Nov. 8 in the case of securities delivered under guaranteed delivery procedures. No additional interest will be paid for the period from the Nov. 5 settlement date to the guaranteed delivery settlement date.

The offer remains subject to the satisfaction of certain conditions, including a financing condition.

Tender results are expected to be announced Nov. 4.

According to the release, the company also issued a notice of redemption for all remaining outstanding securities, setting the redemption date for Dec. 3.

Citigroup Global Markets Ltd. (+44 20 7986 8969, 800 558-3745, 212 723-6106 or liabilitymanagement.europe@citi.com), Credit Agricole Securities (USA) Inc. (866 807-6030 or us.liabilitymanagement@ca-cib.com) and Merrill Lynch International (+44 20 7996 5420, 888 292-0070, 980 387-3907 or DG.LM-EMEA@bofa.com) are the dealer managers for the offer.

The depositary, paying and information agent is Global Bondholder Services Corp. (866 470-3700, 212 430-3774 or contact@gbsc-usa.com).

Rio Tinto is a metals and mining company based in London.

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