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Article from June
https://m.marketscreener.com/quote/stock/INTERNATIONAL-CONSOLIDATE-7233512/news/British-Airways-boss-says-burning-through-cash-urges-unions-to-engage-30723431/
Burning £178M/week so I made a mistake
So 2.4Bn will run for 13.5 weeks
Isn't cash burn ~£200m/week???
So proceeds from rights issue will be gone in ~12weeks or by end of the year?
Does that solve their liquidity issues???
2nd wave kills it completely...
Heathrow is working at under 20% capacity I gather.
Longterm pain for investors here sadly no matter how you dress it
The cash raise will almost like be in the form of Rigts Issue.
No way they can raise over $300million through the placing.
Price will be 10p or under
160p support on daily
145p support on weekly
This strikes them out of ftse100
So board don't want the £2.5Bn raise to complete now and leave it till the last minute... Hmmmm
Next ftse reshuffling in December
Under ~165p Rolls Royce is demoted from ftse100
Let board play this silly game dragging the event further then...
Won't be nice to the shareholders if Rights issue is pushed through
Debt is downgraded to junk isn't it
£19billion debt is huge wowzers
https://www.thisismoney.co.uk/money/markets/article-8750609/amp/Rolls-Royce-set-tap-investors-2-5bn-cash-boost.html?__twitter_impression=true
50p down to 20p is exactly 60% drop
Yuri
45p down to 20p is -55.55%
45 × 0.5555 = 24.999
45-24.999= 20
They would rather do it now at whatever they can get
Dark clown is above RollsRoyce and won't just clear until the money are raised
Anyone playing it now needs to keep enough top ups to average down in case of a further downside...
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.
https://www.rolls-royce.com/media/press-releases/2020/19-09-2020-statement-re-media-speculation.aspx
I beg you pardon???
Read the FT article again
Months away you say???
...as part of the plan to raise ~£2.5Bn from investors next month...
The group is aiming to launch the equity raise in the first weeks of October...
Howerer discussions are ongoing and board has been determined to push the decision to the last minute.
RR said it's reviewing a range of funding options, which could be in the form of debt and equity and no final decision hasn't been made.
Some investors had been pushing the company to increase the debt rather than call on shareholders through a rights issue.
Some investors had been hoping the group would be able to hold off a cash call until could show some results of restructuring.
45p low on 1Sep so over 55% drop