By Andrea Heisinger
New York, May 18 - Rio Tinto Finance (USA) Ltd. gave terms for its $2 billion of notes (A3/A-/A-), which priced in three tranches late on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The $700 million of 2.5% five-year notes were sold at 99.506 to yield 2.606% with a spread of 83 basis points over Treasuries. The notes have a make-whole call at 15 bps over Treasuries.
A $1 billion tranche of 4.125% 10-year notes priced at 99.935 to yield 4.133% with a spread of 103 bps over Treasuries. The notes are callable at a make-whole amount of Treasuries plus 20 bps.
The final part was a reopening of 5.2% bonds due 2040 to add $300 million. Those bonds sold at 98.091 to yield 5.329% with a spread of Treasuries plus 112.5 bps. They have a make-whole call at Treasuries plus 20 bps.
Total issuance for the 2040 bonds is $800 million, including $500 million sold on Oct. 28, 2010 at Treasuries plus 115 bps.
J.P. Morgan Securities LLC, Deutsche Bank Securities Inc. and RBS Securities Inc. were the active bookrunners. Passive bookrunners were Morgan Stanley & Co., Inc., RBC Capital Markets Corp. and Societe Generale.
Co-managers were Banco Bilbao Vizcaya Argentaria, SA, BNP Paribas Securities Corp., Mitsubishi UFJ Securities, Mizuho Securities USA Inc., Natixis Securities North America Inc. and Santander Investment Securities Inc.
Proceeds are being used for general corporate purposes.
The securities are guaranteed by Rio Tinto plc and Rio Tinto Ltd.
Rio Tinto Finance last sold bonds in a $2 billion deal in three tranches on Oct. 28, 2010. The 1.875% five-year notes from that sale sold at a 68 bps spread, while the 3.5% 10-year notes priced at a 93 bps spread.
The mining company is based in Melbourne and Dublin.
| Issuer: | Rio Tinto Finance (USA) Ltd.
|
| Guarantors: | Rio Tinto plc, Rio Tinto Ltd.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBS Securities Inc. (active), Morgan Stanley & Co., Inc., RBC Capital Markets Corp., Societe Generale (passive)
|
| Co-managers: | Banco Bilbao Vizcaya Argentaria, SA, BNP Paribas Securities Corp., Mitsubishi UFJ Securities, Mizuho Securities USA Inc., Natixis Securities North America Inc., Santander Investment Securities Inc.
|
| Trade date: | May 17
|
| Settlement date: | May 20
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | May 20, 2016
|
| Coupon: | 2.5%
|
| Price: | 99.506
|
| Yield: | 2.606%
|
| Spread: | Treasuries plus 83 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 20, 2021
|
| Coupon: | 4.125%
|
| Price: | 99.935
|
| Yield: | 4.133%
|
| Spread: | Treasuries plus 103 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 30-year bonds
|
| Amount: | $300 million, reopened
|
| Maturity: | Nov. 2, 2040
|
| Coupon: | 5.2%
|
| Price: | 98.091
|
| Yield: | 5.329%
|
| Spread: | Treasuries plus 112.5 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Total issuance: | $800 million, including $500 million sold Oct. 28, 2010 at 115 bps spread
|
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