SYDNEY, April 15 (Reuters) – Rio Tinto Finance (USA) Ltd,
an arm of mining giant Rio Tinto (RIO.AX) (RIO.L), on Tuesday
sold $3.5 billion of notes in two parts, said IFR, a Thomson
The Rio offer received overwhelming demand with both
tranches of the deal pricing at the tight end of the
preliminary ranges, according to IFR.
Initial pricing indicated a yield of 9.25-9.375 percent for
the five-year tranche and 9.375-9.5 percent for the 10-year
tranche, IFR said.
Size of the order book ended up at $15 billion with around
1,000 investors, IFR said.
Deutsche Bank, JP Morgan and Morgan Stanley were the active
joint bookrunning managers, and RBS, Credit Suisse and Societe
Generale were the passive joint bookrunning managers for the
The notes, registered with the U.S. Securities Exchange
Commission, will help refinance a $40 billion credit facility
for the acquisition of Alcan, IFR said.
Deal details are as follows, according to IFR:
BORROWER: RIO TINTO FINANCE (USA) LIMITED* FIRST TRANCHE:
AMT $2.0 BLN COUPON 8.95 PCT MATURITY 5/1/2014 TYPE
NOTES ISS PRICE 98.805 FIRST PAY 11/1/2009 MOODY’S
Baa1 YIELD 9.25 PCT SETTLEMENT 4/17/2009 S and P TRIPLE-B
SPREAD 752 BPS/ PAY FREQ SEMI-ANNUAL FITCH BBB-PLUS
MORE THAN TREAS MAKE WHOLE CALL 50 BPS SECOND TRANCHE: AMT
$1.5 BLN COUPON 9.00 PCT MATURITY 5/1/2019 TYPE NOTES
ISS PRICE 97.586 FIRST PAY 11/1/2009 MOODY’S Baa1
YIELD 9.375 PCT SETTLEMENT 4/17/2009 S and P TRIPLE-B
SPREAD 658 BPS/ PAY FREQ SEMI-ANNUAL FITCH BBB-PLUS MORE
THAN TREAS MAKE WHOLE CALL 50 BPS * Guaranteed by Rio Tinto
Plc and Rio Tinto Ltd; COC PUT AT 101
(Reporting by Cecile Lefort)