28th Apr 2016 12:05
LONDON (Alliance News) - Rio Tinto PLC Thursday said it plans to purchase USD1.36 billion worth of debt under its plan to reduce its gross debt in light of lower commodity prices.
The FTSE 100-listed multi-commodity miner is reducing debt by making early repayments on some of its debt that is due to mature in the near-term, and said it has accepted for purchase USD1.36 billion worth of debt through the cash tender offers launched earlier this month to purchase loan notes.
Rio Tinto commenced cash tender offers to purchase its 2017 and 2018 notes last week.
The company will purchase USD339.0 million of its 2% notes that are due in 2017, paying USD1,007 for each USD1,000 worth of loan notes. The other USD1.02 billion being purchased attains to the 1.625% loan notes due in 2017 at a price of USD1,006 per USD1,000 worth of loan notes.
Rio Tinto shares were trading up 1.7% to 2,271.50 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
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