LONDON (Reuters) – Anglo-Australian mining giant Rio Tinto (RIO.L ) (RIO.AX ) has signed a $7.5 billion revolving credit facility that refinances an existing loan, the company said on Friday.
The new loan refinancing was agreed with a group of 28 relationship banks, banking sources said.
A-/A3 rated Rio Tinto has taken advantage of favorable loan market conditions to refinance its existing loan well in advance of its maturity with improved terms and conditions.
The facility, which was co-ordinated by Bank of Tokyo-Mitsubishi UFJ, Deutsche Bank and HSBC, refinances an existing $6 billion loan that was put in place in November 2010 and was due to mature in November 2015.
The new financing is split between a $1.875 billion, three-year loan paying 30 basis points (bps) over LIBOR and a $5.625 billion, five-year loan paying 35 bps over LIBOR, banking sources said. Both loans include extension options.
The existing $6 billion loan, which was provided by a group of 30 banks, refinanced the remaining debt from Rio Tinto’s $40 billion acquisition of Canadian mining company Alcan in 2007, repaid some maturing bilateral loans and provided funds for general corporate purposes.
(Editing by Tessa Walsh)
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