Rolls-Royce prices 2 billion pound equivalent bond to boost finances

LONDON (Reuters) – Rolls-Royce (OTC:RYCEY) said it had successfully priced a 2 billion pound ($2.6 billion) equivalent bond offering in three tranches, more than the 1 billion pounds it was aiming for due to strong demand from investors for the notes.

Rolls, the aero-engine maker whose finances have been strained by the pandemic, said on Thursday the bond offering was expected to close on Oct. 21 and the proceeds would be held in escrow until the successful completion of its rights issue.

The company announced a plan to strengthen its balance sheet earlier in October, which includes a 2 billion pounds rights issue plus the bond and other measures.