Glencore Xstrata launches first bond issue as merged company

Glencore Xstrata has launched and priced three- five- and 10-year fixed-rate notes and three- and five-year floating-rate notes in a five billion dollar five-tranche transaction.

The transaction covers $1.0bn 1.7% guaranteed notes due May 2016, $1.5bn 2.5% guaranteed notes due January 2019, $1.5bn 4.125% guaranteed notes due May 2023, $500m guaranteed floating-rate notes due May 2016 and $500m guaranteed floating-rate notes due January 2019.

Glencore Xstrata will use the net proceeds of the offering to repay part of the amounts outstanding under certain indebtedness and for general corporate purposes.

The share price dropped 4.03% to 336.85p by 14:12.

NR