After “strong demand” from investors, Rolls-Royce has increased the size of its bond offering to £2bn.
On 1 October 2020, the company announced its intention to raise gross proceeds of at least £1bn through a bond offering, as part of a proposed £5bn recapitalisation package to increase resilience, strengthen the balance sheet and support long-term strategy.
Rolls-Royce said the senior unsecured notes – denominated in US dollars, euros and sterling – will be issued by Rolls-Royce plc and guaranteed by the Company.
The firm has also noted that it does not plan to progress the extension to its loan facility with UK Export Finance by up to £1bn, but retains the option to do so at a later time if required.
The Bond Offering is expected to close on 21 October 2020 and the proceeds will be escrowed and will be available to Rolls-Royce upon successful completion of its Rights Issue.