Rolls-Royce to tap investors for £2.5 billion amid the coronavirus pandemic
On Saturday, Rolls-Royce Holdings Plc. (RR.L) reported that it plans to tap investors for 2.5 billion pounds ($3.2 billion) to boost its finances amid the coronavirus outbreak.
The British multinational engineering company said that it was working with Goldman Sachs’s (GS) bankers on debt and equity issuances.
“We continue to review all funding options to enhance balance sheet resilience and strength. Amongst other options, we are evaluating the merits of raising equity of up to £2.5bn through a variety of structures, including a rights issue and potentially other forms of equity issuance. Our review also includes new debt issuance,” Rolls-Royce said in a statement.
The Financial Times reported that Rolls-Royce’s equity raise would be launched in the first weeks of October.
Rolls-Royce cut 9,000 jobs four months ago due to the weak global travel demand and revealed its plans to sell its Spanish unit ITP Aero and other company assets.