RLPC: Rio Tinto to launch $8 billion refinancing Wednesday
LONDON/NEW YORK (Reuters) - Anglo-Australian mining giant Rio Tinto will launch an $8 billion (4.9 billion pounds) loan refinancing on Wednesday, banking sources said on Tuesday.
The deal will refinance an existing $6 billion loan that was put in place in November 2010, the sources said.
Rio Tinto could not immediately be reached for comment.
Proceeds from the existing $6 billion loan refinanced remaining debt from Rio Tinto's $40 billion acquisition of Canadian mining company Alcan, repaid some maturing bilateral loans and also was used for general corporate purposes.
That loan was increased from $5 billion after a successful syndication.
Pricing on the existing loan is based on a ratings grid. Pricing initially opened at LIB+65 basis points for a current rating of BBB+ from Standard & Poor's, according to Thomson Reuters LPC data.
Deutsche Bank and Royal Bank of Scotland were global coordinators on the deal.
Rio Tinto is listed in London and New York, and Rio Tinto Ltd is listed on the Australian Securities Exchange.
(Reporting By Tessa Walsh in London and Leela Parker in New York; Editing by Jonathan Methven and Lynn Adler)
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