Rolls-Royce to raise $6.5 billion to cope with COVID cash crunch

Investing.com | Oct 1, 2020 at 2:00 AM
  • Plans to raise a total of 5 billion pounds ($6.5 billion), including 2 billion from shareholders, to cope with a “worst case scenario” as the coronavirus travel crisis crushes the British engine maker’s cashflow.
  • Airlines pay Rolls based on how many hours its engines fly in their larger jets and worries over a long-haul travel slump have knocked more than 80% off its shares this year, reducing its market value to just 2.5 billion pounds.
  • Shareholders will vote to approve the rights issue at a general meeting expected to be held on Oct. 27 and conditional upon its completion, additional debt options will open up.