Rio Tinto has already commenced with cash tender offers to purchase its 2017 and 2018 notes.
Rio Tinto Finance (USA) plc and Rio Tinto Finance (USA) Limited are making the offers to purchase the outstanding securities, each guaranteed by Rio Tinto plc and Rio Tinto Limited.
The offer for the any and all securities will expire at 5pm, New York City time, on 27 April 2016, unless extended.
The consideration for the any and all securities will be determined by the dealer managers based on a fixed spread over the reference US Treasury Security in accordance with standard market practice as of 11am, New York City time, on 27 April 2016.
Holders will also receive accrued interest on the settlement date for the any and all offer. The settlement date for the any and all offer is expected to be 29 April 2016 (or 3 May 2016 in the case of any and all securities delivered pursuant to the guaranteed delivery procedures described in the offer to purchase).
The companies are offering to purchase for cash, upon the terms and subject to the conditions set forth in the offer to purchase, an aggregate principal amount up to US$1.5 billion less the aggregate principal amount of any and all securities purchased in the any and all offer of the outstanding securities.
The offers are subject to the satisfaction of certain conditions set forth in the offer to purchase. If any of the conditions are not satisfied or waived by the companies, the companies will not be obligated to accept for purchase, purchase or pay for, validly tendered securities.
Following consummation of the offers, the securities that are purchased in the offers will be retired and cancelled and no longer remain outstanding.
The lead dealer managers for the offers are Merrill Lynch, Pierce, Fenner & Smith Incorporated and RBC Capital Markets, LLC. The co-dealer managers are BMO Capital Markets Corp, CIBC World Markets Corp, nabSecurities, LLC and TD Securities (USA) LLC.