Rio Tinto sets price for US$9.0 billion notes on London Stock Exchange – 12 Mar 2025
Rio Tinto has plans to proceed with a public offering of $2.5 billion in mandatory convertible bonds. The company announced that it intends to offer the bonds due in 2027. The offering is subject to satisfaction of customary closing conditions and is expected to close on September 13, 2021.
The bonds will be issued in U.S. dollars with a nominal amount of $1,000 per bond. The conversion price will be $101.07 per Rio Tinto PLC share. The initial conversion rate will represent a premium of 20% to 25% above the reference share price.
Rio Tinto believes that the offering of mandatory convertible bonds is an attractive financial opportunity for the company. By offering these bonds, the company can strengthen its balance sheet and improve its overall debt maturity profile. The proceeds from the offering will be utilized for general corporate purposes, including repayment of outstanding debts.
The bonds will be offered to qualified institutional investors. The offering will be made pursuant to Rule 135c under the Securities Act. The offer is not available to the general public, and potential investors must meet specific criteria to participate.
Rio Tinto has engaged several financial institutions to act as joint bookrunners and joint structuring advisors. The company has also appointed a global coordinator for the offering. The financial institutions involved in the offering will play a crucial role in structuring the terms of the bonds and facilitating the closing process.
In conclusion, Rio Tinto’s decision to proceed with the public offering of $2.5 billion in mandatory convertible bonds reflects the company’s strategic financial planning. By issuing these bonds, Rio Tinto aims to strengthen its financial position and improve its debt maturity profile. The offering is expected to close on September 13, 2021, subject to customary closing conditions. This move demonstrates Rio Tinto’s commitment to pursuing financial opportunities that benefit the company and its stakeholders.
