Rolls-Royce To Meet With Investors As It Presses On With Bond Offering

(Alliance News) - Rolls-Royce Holdings PLC on Monday said it will meet with fixed income ...

Alliance News 5 October, 2020 | 3:56PM
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(Alliance News) - Rolls-Royce Holdings PLC on Monday said it will meet with fixed income investors ahead of the jet engine maker's plans to launch a bond offering.

The FTSE 100 firm, which back on Thursday said it plans to raise GBP1 billion in the offering, on Monday added the senior unsecured notes will be dollar, euro and sterling denominated. Rolls-Royce is targeting maturity dates in 2026 and 2027.

"The group intends to raise gross proceeds of at least GBP1 billion from the bond offering and use these proceeds together with those of the rights issue that forms part of the recapitalization package to enhance its financial resilience and deliver a more appropriate balance sheet in order to position the group for the post Covid-19 environment," Rolls-Royce said.

"This will enable the group to improve its liquidity headroom, reduce its level of balance sheet leverage while supporting disciplined execution and investment to ensure maximized value for existing capabilities."

On Thursday, the company outlined plans for a balance sheet boosting GBP2 billion rights issue, a GBP1 billion bond offering and the possibility of GBP2 billion more in loans.

The 10 for 3 rights issue will see Rolls-Royce issue 6.44 billion shares at 32 pence each.

Rolls-Royce shares were 6.1% higher at 120.58p each in London on Monday afternoon.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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