Rolls-Royce to issue bonds worth two billion pounds to shore up balance sheet - memo

AMSTERDAM (Reuters) - Rolls-Royce is set to raise 2 billion pounds ($2.60 billion) from the sale of multi-currency bonds that will help bolster the COVID-hit aeroplane engine maker's balance sheet, according to a lead-manager memo seen by Reuters.

The British company <RR.L> is set to raise 750 million euros ($880.65 million)from a bond due Feb 2026 that will pay a coupon of 4.625%; 545 million pounds from a bond due Oct 2027 that will pay a coupon of 5.75%; and $1 billion from another bond, also due Oct 2027, that will pay a coupon of 5.75%, according to the memo.

All bonds are priced at the lower end of earlier price guidance, with the deal larger than the 1.5 billion pounds originally marketed.

Pricing on the bonds, part of a larger funding that also includes a rights issue, is expected later on Wednesday. BNP Paribas, Citigroup and Goldman Sachs are managing the sale.

(Story corrects company description, paragraph 1)

(Reporting by Yoruk Bahceli; editing by Tom Wilson)