15th Oct 2020 08:37
(Alliance News) - Aerospace firm Rolls-Royce Holdings PLC on Thursday said it has priced GBP2 billion in a senior notes offering as part of its proposed debt and equity recapitalisation package.
The bond offering comprises of USD1.00 billion 5.750% notes due 2027, EUR750 million 4.625% notes due 2026 and GBP545 million 5.750% notes due 2027.
The proposed GBP5 billion recapitalisation package aims to increase resilience, strengthen the balance sheet and support long-term strategy, according to Rolls-Royce, which has been badly damaged by Covid-19's impact on air travel.
Initially, the intention was to raise approximately GBP1 billion through the offering, but the jet engine maker said that, given the strong demand from investors for the notes, it decided to increase the size of the offering.
The recapitalisation package also includes an approximately GBP2 billion fully underwritten rights issue and commitments for a new two-year term loan facility of GBP1 billion.
Rolls-Royce shares were down 2.4% at 175.65 pence each in London on Thursday morning.
By Greg Roxburgh; [email protected]
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