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UPDATE 1-UK's Meggitt says financial position strong after media report

Thu, 6th Aug 2020 08:46

(Adds detail, background, shares)

LONDON, Aug 6 (Reuters) - British engineering firm Meggitt
said on Thursday its liquidity was strong and that it
continues to trade in line with its expectations, adding it had
committed facilities in place worth 856 million pounds ($1.13
billion).

On Wednesday Bloomberg reported that Meggitt was considering
selling as much as $600 million in new stock and was working
with advisers to review its debt options.

"The Group notes the recent press speculation regarding
potential debt or equity funding options," Meggitt said in
response.

"The group continues to review a range of trading scenarios
and associated actions to mitigate any material adverse change
to the industry outlook," it said in a statement.

Meggitt, a supplier to planemakers Airbus and Boeing, added
it has access to additional liquidity under the Bank of
England's COVID Corporate Financing Facility.

The company has already announced job cuts equivalent to 15%
of its global workforce of 12,000 people.

In recent weeks airlines including easyJet and
British Airways-owner IAG have looked to shareholders
to raise money.

Meggitt customer Rolls-Royce, has said it is
considering its options.

Meggitt shares, which have lost more than half of their
value this year, were down 5% to 279 pence at 0744 GMT.

($1 = 0.7601 pounds)
(Reporting by Sarah Young; editing by Kate Holton and Jason
Neely)

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