UPDATE: Rolls-Royce sells 94% of new shares in 2 bln issue

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.

Private equity groups such as Blackstone, KKR & Co. Inc. and The Carlyle Group were said to be interested although there have been no formal approaches forcing Rolls-Royce into a share issue to bolster its finances.

Source: Reuters