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Rolls-Royce Says No Final Decision Yet On Funding Options

Wed, 16th Sep 2020 18:52

(Alliance News) - Rolls-Royce Holdings PLC on Wednesday noted "recent media speculation" around funding and said no final decision has yet been made.

The jet engine maker did not specify the source of the speculation but said it is reviewing "a range of funding options" aimed as strengthening its balance sheet which might include debt and equity.

However, it stressed that "no final decisions have been taken" and a further announcement would be made "if and when appropriate".

"We have already taken swift action to strengthen our liquidity with GBP6.1 billion at the end of the first half of the year and a further GBP2 billion term loan agreed in the second half. We have also announced GBP1 billion of cost mitigation activity in 2020 and launched a reorganisation of our Civil Aerospace business to save GBP1.3 billion annually. We have also identified a number of potential disposals that are expected to generate proceeds of more than GBP2 billion over the next 18 months, including ITP Aero," said Rolls-Royce.

Shares in Rolls-Royce ended down 5.4% at 192.35 pence in London on Wednesday.

Earlier in the day, aviation partner Boeing Co said it has cooperated "fully and extensively" with the inquiry into its troubled 737 Max aircraft by Transportation Committee of the US House of Representatives since it began in early 2019.

The probe followed the crash of Lion Air Flight 610 and Ethiopian Airlines Flight 302 and the subsequent global grounding of the 737 Max jet.

The committee's investigation concluded that Boeing failed in its design and development of the 737 MAX and that the Federal Aviation Administration failed in its oversight of Boeing and its certification of the aircraft.

By Anna Farley; annafarley@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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