Rolls-Royce Holdings plc’s Proposed Recapitalisation

Slaughter and May advised Rolls-Royce Holdings plc on its proposed recapitalisation package.

The package is designed to improve liquidity headroom, reduce balance sheet leverage and support disciplined execution and investment.

The package includes the launch of a fully underwritten rights issue to raise gross proceeds of approximately £2bn and the announcement of an intention to commence a bond offering to raise gross proceeds of at least £1bn. Rolls-Royce has also agreed commitments for a new two year term loan facility of £1bn and has received an indication of support in principle from UK Export Finance for an extension of its 80% guarantee of Rolls Royce’s existing £2bn five year term loan to support a potential increase in the loan amount of up to £1bn.

Slaughter and May is working very closely with the Rolls-Royce team, including Pamela Coles, Mark Gregory, Nicola Carroll, Ben Horsley, James Harvey and Jeff Pasternack, and is advising Rolls-Royce as a combined team with Davis Polk & Wardwell London (who are advising on matters of US law).

Slaughter and May’s team included Steve Cooke (Picture), Partner, Alex Dustan, Partner, Yvonne Lee, Senior Counsel, James Cook, Associate, Hemita Sumanasuriya, Associate, Thomas Potter, Associate, Emily Hunter, Associate, Edward Rochford, Associate, Henrietta Wirta, Associate, Richard Bishop, Associate, Rachel Lawrence, Associate, Will Humphries, Trainee, Clara Austera, Trainee, Sam Cadd, Trainee, Gregory Ong, Trainee, Alex Cranstoun, Trainee, Owen Clarridge, Trainee, David Kasal, Trainee, Tara Kakkar, Trainee, Marina Goodman, Trainee, Rei See, Trainee, Heather Crosby, Trainee, Natalie Goodman, Trainee, Ed Fife, Partner, Saffiya Haddad, Associate, Abigail Dalgleish, Associate, Dominic Robertson, Partner, Stephanie Mullins, Associate, Phil Linnard, Partner, Rosemary Nelson, Associate, Cerys Mather, Associate and Adrien Mallevays, Associate.

Involved fees earner: Richard Bishop – Slaughter and May; James Cook – Slaughter and May; Steve Cooke – Slaughter and May; Abigail Dalgleish – Slaughter and May; Alex Dustan – Slaughter and May; Ed Fife – Slaughter and May; Saffiya Haddad – Slaughter and May; Emily Hunter – Slaughter and May; Rachel Lawrence – Slaughter and May; Yvonne Lee – Slaughter and May; Phil Linnard – Slaughter and May; Adrien Mallevays – Slaughter and May; Cerys Mather – Slaughter and May; Stephanie Mullins – Slaughter and May; Rosemary Nelson – Slaughter and May; Thomas Potter – Slaughter and May; Dominic Robertson – Slaughter and May; Edward Rochford – Slaughter and May; Hemita Sumanasuriya – Slaughter and May; Henrietta Wirta – Slaughter and May;

Law Firms: Slaughter and May;

Clients: Rolls-Royce;