Rio Tinto Finance Prices $9 Bln Of Fixed And Floating Rate Notes

(RTTNews) - Rio Tinto Group (RIO), a mining and materials company, on Wednesday announced that it has priced $9.0 billion of fixed and floating rates.

The bonds, to be issued by Rio Tinto Finance (USA) plc, will be guaranteed by Rio Tinto plc and Rio Tinto Limited.

Rio Tinto plans to use the net proceeds for general corporate purposes, including repaying debt from a bridge loan used to finance the acquisition of Arcadium Lithium.

The offering includes eight tranches with varying maturities and interest rates.

The shortest-term bonds include $500 million in two-year notes with a 4.375% fixed coupon, maturing in 2027. The three-year options include $750 million in fixed-rate notes at 4.500%, and $500 million in floating-rate notes tied to Compounded SOFR plus 0.840%, both maturing in 2028.

For longer terms, the company will issue $1.75 billion in five-year notes at 4.875% which is maturing in 2030, $1.25 billion in seven-year notes at 5.000% which is maturing in 2032, and $1.75 billion in ten-year notes at 5.250% which is maturing in 2035.

The longest-term offerings include $1.75 billion in thirty-year notes at 5.750% which is maturing in 2055) and $750 million in forty-year notes at 5.875% which is maturing in 2065.

Tuesday, Rio Tinto stock had closed at $61.85, 0.58 lesser on the New York Stock Exchange. In the after-market hours, the stock traded 0.10% higher before ending the trade at $61.91.