Company News

Rolls-Royce sells 94% of new shares in 2 bln stg rights issue

LONDON, Nov 12 (Reuters) - British engineering company Rolls-Royce said shareholders signed up for 94% of new shares it issued as part of a 2 billion pound ($2.64 billion) rights issue to bolster its finances after the pandemic stopped planes flying.

Rolls-Royce said on Thursday that the underwriting banks would try to procure subscribers for the remaining shares, or failing that would subscribe for them themselves, under the terms of their agreement.

The equity raise unlocks new debt options including 2 billion pounds from a bond issued in October and a bank loan worth 1 billion pounds, as part of a 5 billion pound liquidity package for the company. ($1 = 0.7587 pounds) (Reporting by Sarah Young, Editing by Paul Sandle)