Adds background, detail
LONDON, Oct 1 (Reuters) – Britain’s Rolls-Royce RR.L said it planned to raise 2 billion pounds ($2.6 billion) from shareholders, 1 billion pounds from the bond market and secure further loans to rebuild its balance sheet after COVID-19.
The pandemic has battered Rolls’s finances as airlines pay the company according to how many hours its engines fly in wide-body jets. Worries that a recovery in travel will take years have pushed its share price down by 80% this year.
Rolls said on Thursday that the 10 for 3 heavily discounted rights issue was fully underwritten at 32 pence per share, a 41% discount to the closing price of 130 pence per share on Wednesday.
In May, the company said it would cut 9,000 jobs as a result of the pandemic and its finances have been the subject of media speculation since.
“The capital raise announced today