Rio Tinto Refinances US$1.2 Billion of Debt
12 June 2015 - 9:19AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY--Rio Tinto PLC (RIO) said it would issue US$1.2 billion
of 10-year bonds, enabling it to repay existing debts due next
year.
The Anglo-Australian mining company said it had priced the
10-year fixed-rate debt securities with a coupon of 3.75%. That is
higher than its existing interest rate, although significantly
lower than smaller iron-ore rivals such as Fortescue Metals Group
Ltd. (FMG.AU) have paid to restructure their debts in the face of
weaker commodity prices.
The bonds will mature on June 15, 2025.
Rio Tinto said it could now redeem all outstanding debt due to
mature in 2016, which had coupons between 2.25%-2.50% and totaled
US$1.2 billion.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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