Rio Tinto To Reduce Gross Debt By $1.5 Bln Through September Cash Tender Offers

(RTTNews) - Rio Tinto (RTPPF.PK, RIO.L, RIO, RTNTF.PK) said that it will reduce its gross debt by $1.5 billion under cash tender offers announced on 26 September 2016.

The Offer, which commenced on 26 September 2016 and will expire on 24 October 2016, was oversubscribed at 5pm, New York City time, on 7 October 2016 and therefore approximately $1.5 billion of Securities will be purchased. No Securities tendered after the above time will be accepted.

Approximately $1.1 billion of Securities with Acceptance Priority Level 1 were validly tendered and not validly withdrawn at or prior to the Early Tender Deadline. Therefore, subject to the terms of the Offer, such Securities have been prorated using a proration factor of approximately 87.3 per cent. Subject to the terms of the Offer, the Securities with Acceptance Priority Level 2 validly tendered and not validly withdrawn at or prior to the Early Tender Deadline have been prorated using a proration factor of approximately 60.4 per cent.

As announced on 26 September, Rio Tinto has also issued a redemption notice for approximately $1.5 billion of its 2017 and 2018 US dollar-denominated notes. The redemption date is 26 October 2016. The redemption along with the Offer will bring the total amount of notes purchased in October 2016 to $3.0 billion.