Linklaters and Davis Polk advise as Rio Tinto taps bond markets for $2bn
Linklaters and Davis Polk & Wardwell have taken lead roles on a $2bn (£1.3bn) notes offering by Rio Tinto, which saw the mining giant take advantage of current low yields on corporate bonds to reduce its debt costs. Linklaters advised Rio – a longstanding client of the firm – on the offering, which is split into three parts, comprising $500m (£324m) of notes due in 2016, $1.15bn (£746m) due in 2021 and $350m (£227m) due in 2040.
September 28, 2011 at 07:03 PM
2 minute read
Linklaters and Davis Polk & Wardwell have taken lead roles on a $2bn (£1.3bn) notes offering by Rio Tinto, which saw the mining giant take advantage of current low yields on corporate bonds to reduce its debt costs.
Linklaters advised Rio – a longstanding client of the firm – on the offering, which is split into three parts, comprising $500m (£324m) of notes due in 2016, $1.15bn (£746m) due in 2021 and $350m (£227m) due in 2040.
The magic circle firm's London-based team was led by capital markets partner Cecil Quillen, while Allens Arthur Robinson banking partner James Darcy provided Australian law advice for Rio.
Davis Polk represented the consortium of financial advisers – Barclays Capital, BNP Paribas, Morgan Stanley, Citigroup, HSBC and SG Americas Securities – which acted as joint bookrunners and representatives of the underwriters.
The US law firm ran the transaction out of its London office with a corporate team including capital markets partner Nigel Wilson, who worked alongside tax partner John Paton.
The financing comes after a period in 2010 and early 2011 in which many large corporates turned to the bond markets to lock in cheap borrowing at a time when many banks are scaling back their balance sheets.
However, a summer of volatile markets amid concerns regarding the eurozone economies has seen many capital markets deals being delayed.
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