By Andrea Heisinger
New York, Sept. 15 - Rio Tinto Finance (USA) Ltd. gave terms for its $2 billion sale of guaranteed senior bonds (A3/A-/A-) sold in three parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 2.25% five-year notes sold at 99.4 to yield 2.378% with a spread of Treasuries plus 148 basis points. The notes have a make-whole call at Treasuries plus 25 bps.
The second part was $1.15 billion of 3.75% 10-year notes priced at 99.744 to yield 3.781% with a spread of 178 bps over Treasuries. The notes are callable at a make-whole amount of 30 bps over Treasuries.
Finally, the company reopened its 5.2% notes due 2040 to add $350 million. They were priced at 102.285 to yield 5.049% with a spread of Treasuries plus 178 bps. There is a make-whole call at Treasuries plus 20 bps.
Total issuance for the notes due 2040 is $1.15 billion, including $500 million issued on Nov. 2, 2010 and $300 million issued on May 20.
Barclays Capital Inc., BNP Paribas Securities Corp. and Morgan Stanley & Co. LLC were the active bookrunners. Passive bookrunners were Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and SG Americas Securities LLC.
Co-managers were ANZ Securities Inc., Credit Agricole Securities USA Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc. and UBS Securities LLC.
The notes are guaranteed by Rio Tinto plc and Rio Tinto Ltd.
Proceeds will be used for general corporate purposes.
Rio Tinto Finance last priced paper in a $2 billion deal in three tranches on May 17.
The mining company is based in Melbourne and London.
| Issuer: | Rio Tinto Finance (USA) Ltd.
|
| Guarantors: | Rio Tinto plc, Rio Tinto Ltd.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Barclays Capital Inc., BNP Paribas Securities Corp., Morgan Stanley & Co. LLC (active), Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Societe Generale (passive)
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
| Fitch: A-
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 20, 2016
|
| Coupon: | 2.25%
|
| Price: | 99.4
|
| Yield: | 2.378%
|
| Spread: | Treasuries plus 148 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $1.15 billion
|
| Maturity: | Sept. 20, 2021
|
| Coupon: | 3.75%
|
| Price: | 99.744
|
| Yield: | 3.781%
|
| Spread: | Treasuries plus 178 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
|
|
| Notes due 2040
|
| Amount: | $350 million, reopened
|
| Maturity: | Nov. 2, 2040
|
| Coupon: | 5.2%
|
| Price: | 102.285
|
| Yield: | 5.049%
|
| Spread: | Treasuries plus 178 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Total issuance: | $1.15 billion, including $500 million issued Nov. 2, 2010, $300 million issued on May 20
|
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