Rio Tinto to reduce gross debt by $3 billion through its June tender offers

Rio Tinto will reduce its gross debt by a further $3 billion after accepting for purchase a total of $1.252 billion of debt under its Maximum Tender Offer and $1.748 billion under its Any and All Offer. Both offers commenced on 7 June 2016 and are part of Rio Tinto’s ongoing capital management.

The final aggregate principal amount of Securities purchased under the Any and All Offer that expired on 13 June 2016 was $1.748 billion, including the notes purchased under the guaranteed delivery procedures described in the Offer to Purchase.

The Maximum Tender Offer, which commenced on 7 June 2016 and will expire on 5 July 2016, was oversubscribed at 5pm, New York City time, on 20 June 2016 and therefore $1.252 billion of Maximum Tender Securities will be purchased. No Maximum Tender Securities tendered after the above time will be accepted.

The following notes will be purchased pursuant to the Maximum Tender Offer: $487.6 million in aggregate principal amount of Rio Tinto Finance (USA) Limited 3.500 per cent Notes due 2020, $337.9 million in aggregate principal amount of Rio Tinto Finance (USA) Limited 4.125 per cent Notes due 2021, $400.8 million in aggregate principal amount of Rio Tinto Finance (USA) Limited 3.750 per cent Notes due 2021, $11.5 million in aggregate principal amount of Rio Tinto Finance (USA) plc 3.500 per cent Notes due 2022 and $14.6 million in aggregate principal amount of Rio Tinto Finance (USA) plc 2.875 per cent Notes due 2022. The Maximum Tender Securities purchased will be retired and cancelled and no longer remain outstanding.

Subject to the terms of the Maximum Tender Offer, all Maximum Tender Securities validly tendered and not validly withdrawn at or prior to the Maximum Tender Early Tender Deadline with an Acceptance Priority Level higher than three have been accepted for purchase. Subject to the terms of the Maximum Tender Offer, Maximum Tender Securities validly tendered and not validly withdrawn at or prior to the Maximum Tender Early Tender Deadline with Acceptance Priority Level three have been prorated using a proration factor of approximately 3.20 per cent. All Maximum Tender Securities not accepted as a result of proration have been rejected from the Maximum Tender Offer. No Maximum Tender Securities tendered after the Maximum Tender Early Tender Deadline have been or will be accepted for purchase.

The Reference Yield and the Maximum Tender Total Consideration for each series of the Maximum Tender Securities will be determined on 21 June 2016 at 11am, New York City time, using the methodology described in the Offer to Purchase. The settlement date for the Maximum Tender Securities to be purchased is expected to be 22 June 2016.

Capitalised terms in this announcement have the same meaning as assigned to them in the Offer to Purchase dated 7 June 2016.

The Lead Dealer Managers for the offers are Citigroup Global Markets Limited, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Mitsubishi UFJ Securities (USA), Inc. The Co-Dealer Managers are Natixis Securities Americas LLC, RBS Securities Inc., Santander Investment Securities Inc. and Standard Chartered Bank.