21 September 2020
STATEMENT RE: MEDIA SPECULATION
Rolls-Royce notes the continued media speculation regarding the possibility of the Group undertaking a fund raising.
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.
No final decisions have been taken as to whether or when to proceed with any of these options or as to the precise amount that may be raised.
As we said on 27 August 2020, following rapid management actions to reduce costs and secure additional liquidity, we started the second half of 2020 with liquidity of £6.1bn (comprising £4.2bn cash at end June and a £1.9bn undrawn revolving credit facility). In addition, we finalised a £2bn undrawn term loan, partly backed by the UK Export Finance, in August. We have also launched a major restructuring of our Group, in particular our Civil Aerospace business, with forecast annualised pre-tax savings of over £1.3bn by the end of 2022. As previously announced, we have also already identified a number of potential disposals that are expected to generate proceeds of more than £2bn over the next 18 months, including ITP Aero.
A further announcement will be made if and when appropriate.
This announcement has been determined to contain inside information.
About Rolls-Royce Holdings plc
1. Rolls-Royce pioneers cutting-edge technologies that deliver clean, safe and competitive solutions to meet our planet's vital power needs.
2. Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces, 70 navies, and more than 5,000 power and nuclear customers.
3. Annual underlying revenue was £15.45 billion in 2019, around half of which came from the provision of aftermarket services.
4. In 2019, Rolls-Royce invested £1.46 billion on research and development. We also support a global network of 29 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.
5. Rolls-Royce Holdings plc LEI: 213800EC7997ZBLZJH69
For further information, please contact:
Director of External Communications & Brand, Rolls-Royce plc
Tel +44 (0) 7810 850055
Head of Investor Relations, Rolls-Royce plc
Tel +44 (0) 7880 160976