The mining giant Rio Tinto $RIO (-2.04%) has successfully placed a substantial bond issue totaling USD 9.0 billion in fixed and floating rate notes through its subsidiary Rio Tinto Finance (USA) plc. The issue, announced on March 12, 2025, comprises eight tranches with different maturities ranging from two to forty years.
The tranches are structured as follows: USD 500 million two-year bonds with a fixed coupon of 4.375%, USD 750 million three-year bonds at 4.500% and an additional USD 500 million three-year bonds with a floating interest rate linked to the compounded SOFR plus 0.840%. The offering also includes US$1.75 billion of five-year bonds at 4.875%, US$1.25 billion of seven-year bonds at 5.000%, US$1.75 billion of ten-year bonds at 5.250%, US$1.75 billion of thirty-year bonds at 5.750% and US$750 million of forty-year bonds at 5.875%.
The proceeds from this debt offering are earmarked for general corporate purposes, including the repayment of a bridge loan facility used to finance the acquisition of Arcadium Lithium.
A syndicate of banks acted as joint bookrunners for the transaction, with additional financial institutions acting as co-managers. This extensive group of underwriters reflects the size and importance of the issue.
Rio Tinto, a dual-listed company with significant operations in several countries, has fully and unconditionally guaranteed the bonds through both Rio Tinto plc and Rio Tinto Limited.
The securities offering was made pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission. Interested parties were able to access the prospectus supplement and accompanying base prospectus through the SEC's website or directly from the underwriters involved in the offering.
This financial move by Rio Tinto underscores its strategic initiatives and ongoing management of its capital structure.
