Under Rio Tinto'splan to reduce gross debt through the early repayment of some near term maturingdebt, Rio Tinto Finance (USA) plc has agreed to buy back US$1.36 billion in under its planned US$1.5 billiondebt buyback.
The company previously noted that what is left of the earmarkedUS$1.5 billion after repurchasing the 2017 bonds will be used to buy back Dutchauction securities, which include its 6.500% US$1.75 billion notes and 2.250% US$1.25billion notes due 2018.
Under the any and all offer comprising the 2017 bonds, the companywill purchase US$339 million in aggregate principal amount of its 2% notes due 2017at a price of US$1,006.91per US$1,000 principal amount of notes, and US$1.02 billion in aggregate principalamount of its 1.625% notes due 2017 at a price of US$1,005.85 per US$1,000 principalamount of notes.
The securities purchased will be retired and canceled, and nolonger remain outstanding. Settlement of the offer is scheduled for April 29.
Merrill Lynch Pierce Fenner & Smith Inc. and RBC CapitalMarkets are the lead dealer managers for the offer, with BMO Capital Markets, CIBCWorld Markets, nabSecurities and TD Securities (USA) as co-dealer managers.