By Eleanor Duncan
LONDON, Oct 5 (IFR) – Rolls-Royce is kicking off the high-yield bond leg of its survival plan this week with a £1bn-equivalent multi-currency deal.
The British aerospace company (Ba3/BB-/BB+) has hired BNP Paribas, Citigroup and Goldman Sachs as global co-ordinators and bookrunners to kick off four days of investor calls in Europe and the US, beginning on October 6.
Rolls-Royce is looking to place a minimum of £1bn-equivalent senior unsecured notes targeting maturities of 2026 (long five-year) and 2027 (straight seven-year) and denominated in euros, sterling and/or US dollars.
Proceeds, together with the company’s rights issue, will be used for increasing the company’s liquidity headroom, and to repay upcoming debt maturities including the US$500m 2.375% notes due October 2020, the €750m 2.125% notes due June 2021 and£300m of commercial paper due March 2021.
BNP Paribas and Goldman Sachs will be co-ordinating European logistics, while Citigroup will