EX-99.5 6 ex995.htm Exhibit 99.5  

Media release

Rio Tinto successfully completes $2.5 billion gross debt reduction

23 June 2017

Rio Tinto has successfully completed its bond tender and redemption exercises announced on 22 May 2017 and has reduced gross debt by a further $2.5 billion. Since the start of 2016 we have now reduced the nominal value of our outstanding bonds from approximately $21 billion to about $9.5 billion.

The Notes purchased by Rio Tinto Finance (USA) plc and Rio Tinto Finance (USA) Limited in the $1.72 billion redemption notices and the $781 million tender offers are detailed below.

Title of      Principal Amount       
Security  Issuer and Offeror  CUSIP/ISIN

Purchased(1) 

 

Consideration

Mechanism 

 
9.000% Notes  Rio Tinto Finance  767201AH9/         
due 2019  (USA) Limited  US767201AH93 $1,254,306,000    $1,130.596876(2) redemption 
 
3.500% Notes  Rio Tinto Finance  767201AK2/ $464,876,000    $1,058.392792(2) redemption 
due 2020  (USA) Limited  US767201AK23        
 
4.125% Notes  Rio Tinto Finance  767201AN6/ $144,185,000    $1,080.05(3) tender 
due 2021  (USA) Limited  US767201AN61        
 
3.750% Notes  Rio Tinto Finance  767201AQ9/ $273,929,000    $1,066.93(3) tender 
due 2021  (USA) Limited  US767201AQ92        
 
3.500% Notes  Rio Tinto Finance  76720AAC0/ $231,615,000    $1,057.76(3) tender 
due 2022  (USA) plc  US76720AAC09        
 
2.875% Notes  Rio Tinto Finance  76720AAF3/  $131,089,000   

$1,028.77(3)

tender 
due 2022  (USA) plc  US76720AAF30        

 

(1)      Settlement of 9.000% Notes due 2019 and 3.500% Notes due 2020 was on 21 June 2017. Settlement of 4.125% Notes due 2021, 3.750% Notes due 2021, 3.500% Notes due 2022 and 2.875% Notes due 2022 was on 7 June 2017.
(2)      Per $1,000 principal amount of notes under the redemption notice.
(3)      Per $1,000 principal amount of Securities validly tendered and accepted for purchase.

Capitalised terms in this announcement have the same meaning as assigned to them in the Offer to Purchase dated 22 May 2017.

The Notes purchased and redeemed have been retired and cancelled and no longer remain outstanding.

The early redemption costs are expected to reduce underlying earnings by approximately $180 million and cash flow from operating activities by approximately $260 million in the first half of 2017. These reductions will be offset by savings in future periods.

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Investor Relations, EMEA/Americas Investor Relations, Australia/Asia 
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David Ovington  Rachel Storrs 

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Nick Parkinson   

T +44 20 7781 1552 

 

M +44 7810 657 556 

 
   
   
   
   
Rio Tinto plc  Rio Tinto Limited 
6 St James’s Square  120 Collins Street 
London SW1Y 4AD  Melbourne 3000 
United Kingdom  Australia 
   

T +44 20 7781 2000 

T +61 3 9283 3333 

Registered in England  Registered in Australia 
No. 719885  ABN 96 004 458 404 

 

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