BUSINESS | Roll-Royce Plans $1.9 Billion Share Issue To Bolster Finances, Sources Say

LONDON – Rolls-Royce is planning a share issue to raise up to $1.9 billion to pug a capital shortfall as a slow recovery in demand for air travel threatens the aviation industry, four sources told Reuters.

The British aerospace engineer is expected to pursue a rights issue with new shares offered to existing investors at a discount to the market price, they said.

The Derby-based business, whose share have tanked nearly %60 since early March, is in talks with BNP Paribas, Morgan Stanley and Jefferies about the share sale, which could take place in September, two of the sources said.

Rolls-Royce told Reuters it was still reviewing options to strengthen its balance sheet but no decision had been taken. ‘our current financial position and liquidity remain strong’, a spokesman said.

Jefferies, BNP Paribas and Morgan Stanley declined to comment.

Royals-Royce, which makes engines for the Boeing 787 and Airbus 350, said it would burn through 3 billion pounds in the first half of the year as hours flown by its engines halved due to the COVID-19 pandemic.

The company, most of whose revenues come from airlines paying it for engine flying hours, expects a further 1 billion pound outflow in the second half of 2020.

Rolls-Royce, with a market value of 5 billion pounds, could raise up to 1.5 billion pounds in the share sale, the sources said, although one source said the deal size would largely depend on how much the firm raised from selling assets.

Rolls-Royce’s Spanish unit ITP Aero is among assets earmarked for sale to raise funds, the sources said.

Several aviation companies and travel companies are expected to tap equity capital markets to shore up their balance sheets in coming months. Rising borrowing costs mean many deals are likely to involve some form of share issue.


BREAKING NEWS | Trump Pardons Ex – Aide Bannon But Not Himself Or Family

U.S. President Donald Trump granted clemency to former White House aide Steve Bannon as part of a wave of pardons and commutations issued in his final hours in office, but did not pardon himself, members of his family or lawyer Rudy Giuliani. Trump leaves office on Wednesday, when Joe Biden is sworn in as the … Continue reading BREAKING NEWS | Trump Pardons Ex – Aide Bannon But Not Himself Or Family

BREAKING NEWS | Saudi Crown Prince Receives Phone Call From French President Macron

RIYADH – – Saudi Arabia’s Crown Prince Mohammed bin Salman has received a phone call from French President Emmanuel Macron in which they discussed bilateral relations. ‘During the call, they reviewed relations between the two countries and opportunities for joint cooperation. Regional and international developments were discussed, and a number of issues of common interest … Continue reading BREAKING NEWS | Saudi Crown Prince Receives Phone Call From French President Macron

BREAKING NEWS | Saudi To Reopen Qatar Embassy In Coming Days – Saudi Minister

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SPORTS | Formula One Season Set To Start In Bahrain After Australian Grand Prix Postponement

MILAN – – The start of the Formula One season has been delayed after the Australian Grand Prix was postponed from March to November because of the COVID-19 pandemic.The Australian race in Melbourne has been rescheduled from March 21 to November 21. The Chinese GP has also been delayed but no new date has been … Continue reading SPORTS | Formula One Season Set To Start In Bahrain After Australian Grand Prix Postponement

BREAKING NEWS | Investments In Saudi Arabia’s Economy Will Reach Six Trillion Dollars: Crown Prince

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TRAVEL | Saudi Arabia Warns Citizens Against Travel To 12 Countries Without Approval Over Virus Fears

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ROYALS | Oman Sultan’s Eldest Son Dhi Yazan To Succeed Him, Becoming First Crown Prince

RIYADH – – Oman’s Sultan Haitham will be succeeded by his eldest son Dhi Yazan, according to a new basic law published on Tuesday that creates a new position of crown prince and established succession from ruler to the eldest son. Sultan Haitham bin Tariq Al-Said has announced plans for the constitutional change on Monday, … Continue reading ROYALS | Oman Sultan’s Eldest Son Dhi Yazan To Succeed Him, Becoming First Crown Prince

SOCIAL MEDIA | YouTube Suspends Trump’s Channel After Violating Policy On Inciting Violence

Alphabet Inc.’s YouTube said on Tuesday it has suspended Donald Trump’s channel as it violated policies for inciting violence after last week’s assault on the U.S. Capitol by the president’s supporters. Online platforms and social media companies are distancing themselves from, and taking action against, those that encouraged or engaged in the violence in Washington, … Continue reading SOCIAL MEDIA | YouTube Suspends Trump’s Channel After Violating Policy On Inciting Violence

BREAKING NEWS | Saudi Crown Prince Congratulates Romanian PM, On Winning President, Parliament Confidence

RIYADH – – HRH Prince Mohammad bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Minister of Defense, has sent a cable of congratulations to Prime Minister of Romanian Florin Citu on obtaining the confidence of the Romanian President as well as the parliament for the office of the prime minister.  HRH … Continue reading BREAKING NEWS | Saudi Crown Prince Congratulates Romanian PM, On Winning President, Parliament Confidence

BREAKING NEWS | Saudi King Congratulates Romanian PM, on Winning President, Parliament Confidence

RIYADH — The Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud sent a cable of congratulations to the Romanian Prime Minister Florin Citu, on obtaining the confidence of His Excellency Romanian President as well as the parliament for the office of the Prime Minister. In his cable, the King expressed sincere … Continue reading BREAKING NEWS | Saudi King Congratulates Romanian PM, on Winning President, Parliament Confidence

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