Turquoise Hill to go ahead with $2.4b rights offer

Rio Tinto's unit Turquoise Hill Resources Ltd will present a $2.4 billion rights offer in order to pay down credit facilities.

In the offer, Turquoise Hill Resources investors will be entitled to purchase an additional share at a 42% discount on closing prices in New York and Toronto ($2.40 and C$2.53, respectively) on November 25th.

The company expects to double the number of outstanding common shares with the offer, using the proceeds to repay a $1.8 billion interim credit facility and a $600 million bridging facility.

Turquoise Hill shares rose 1.8 percent to C$4.47 on Tuesday.

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