ROLLS ROYCE SEEKS 250 MLN STG CREDIT FACILITY
Rolls Royce, the U.K.'s state-owned car
and aircraft engine maker, is seeking a 250 mln stg multiple
option facility to provide it with additional sources of
financing, banking sources said.
    They said the facility, which will be syndicated among a
small group of the borrower's relationship banks, is being put
in place ahead of the privatisation of Rolls Royce in April or
May. At the borrower's request, terms will not be disclosed
until later this week, when bankers expect the syndication to
close. But while the terms are in line with the market, they
are somewhat tight, bankers said.
    The bankers noted that although Rolls Royce's debt will be
negligible after privatisation it wants to have a range of
financing arrangements available to allow it to take advantage
of market opportunities when they become available.
    The financing will involve a 150 mln stg five-year
committed tranche and will be backed by an uncommitted tender
panel through which Rolls Royce will be able to issue bills or
multi-currency advances.
    S.G. Warburg and Co Ltd is arranger for the financing, the
bankers said.
 REUTER
