Rio Tinto Says Alcan Loan Syndication Closing

Global diversified mining company Rio Tinto said that its loan syndication to fund the purchase of Canadian miner Alcan is closing Wednesday. A Rio Tinto spokesman said completion was subject to finalizing documentation, expected next week. The spokesman declined to state exact dollar figures for the loan, but said the company would be able to make a fuller statement next week. He said the loan was oversubscribed. “We are very happy with the way the syndication has gone,” the spokesman said. Rio Tinto was seeking to finance the Alcan deal as risk is being repriced and lenders are drying up as the result of a crunch triggered by problems in the U.S. subprime lending market. Rio Tinto’s underwriters were in the market trying to sell $40 billion of debt into European markets. Rio’s loan is underwritten by Royal Bank of Scotland, Deutsche Bank, Credit Suisse and Societe Generale.