Rolls-Royce has successfully priced a US dollar-denominated issue of notes raising gross proceeds of approximately $1,498,740,000. The Notes will be issued by Rolls-Royce plc and guaranteed by Rolls-Royce Holdings plc, pursuant to Rule 144A and Regulation S.
The transaction consists of $500 million aggregate principal amount of 2.375% notes due 2020 and $1bn aggregate principal amount of 3.625% notes due 2025 and is the debut issuance for the Rolls-Royce Group in this market. It is expected that the proceeds of the offering will be used for general corporate purposes and to enhance liquidity.
The issue is scheduled to close on October 14, 2015, subject to customary conditions. It is expected that the Offering Memorandum in respect of the notes will shortly be filed with the UK Listing Authority.
Bank of America Merrill Lynch, Citi, Goldman Sachs and JPMorgan are bookrunners on the issuance.
Rolls-Royce intends to use the proceeds for general corporate purposes and to refinance an existing £400m bond issue that matures in 2017. The company issued a £1bn bond issue in 2013, but this is the first time it has issued debt in the US 144a bond market. The company states that it is “very pleased with the level of interest from investors”.