“As we head into the last quarter, there is a current need to further tighten and minimise the rate of spend on non-staff costs,” Kyle said in the email, a copy of which was seen by Reuters.Investment banks have slashed costs this year as income has dried up, resulting in big job cuts and even minor expenses coming under fire.The squeeze has intensified after a weak third quarter, and Barclays Capital earlier this month outlined a range of savings initiatives, including cutting back on business travel and stricter rules on the use of taxis.RBS’s Kyle said all international travel for internal purposes was to stop, and all travel of under four hours duration had to be in economy class.He also told staff there would be a freeze on hardware and software spend; all contractors would have to take a mandatory two-week vacation over Christmas; and there could be no new newspaper or magazine subscriptions.
Rolls-Royce, for which the IAE represents approximately 13% of its civil aerospace revenue, will see a material improvement in its liquidity position as a result of the transaction, with the USD1.5bn cash payment received at closing (expected H112), likely to stay on the company’s balance sheet. This cash inflow will go some way to offsetting the material cash outflow of over GBP1.3bn in H211 in relation to the Tognum AG acquisition. As part of the consideration for its stake, Rolls-Royce will also receive cash payments from IAE over a 15-year period based on the number of flight service hours of the JV’s key product, the V2500 aero engine. RR will include this payment in its operating profit, thus boosting the earnings margins and providing increased headroom under the current ratings.By exiting the IAE, the transaction will also allow Rolls-Royce to focus on the development of an all-new mid-sized aero engine for the next generation single aisle aircraft expected in the middle of the next decade, which is seen by the company as of importance, in light of its decision not to develop a new engine for the recently launched re-engined single aisle aircraft by Airbus (A320NEO) and Boeing (B737MAX).For MTU, which plans to materially increase its stake in the V2500 programme from the current 11%, the cash outflow in relation to the transaction may lead to a temporary loss of financial flexibility, although the group’s liquidity is likely to remain moderate in light of its ample cash reserves, available credit lines and free cash flow generation. Nevertheless, Fitch will monitor closely refinancing risk in the near future, particularly in relation to the March 2012 EUR150m convertible bond.Furthermore, the transaction will represent an increase in the revenue and earnings sourced from the company’s largest and most successful commercial engine programme. MTU plans to increase its stake in IAE by acquiring a part of the Rolls-Royce stake bought by P&W, once the later completes the buyout of the 32.5% Rolls-Royce share.
Raising new loans would take further pressure off the banks to sell the 1.75 billion zloty ($562 million) bond as credit market conditions for high-yield issuers remain difficult.Credit Agricole, Deutsche Bank, Royal Bank of Scotland, Societe Generale and PKO BP underwrote the bridge to bond in July to back Polkomtel’s buyout by Polish billionaire Zygmunt Solorz-Zak.The bookrunners are sounding out other banks to see how much in term loans they can raise in addition to the 1.9 billion euro ($2.6 billion) equivalent they already raised in August, the sources said.At the time, the loan attracted strong demand from Polish and other international banks, despite the difficult market conditions over the summer due to worsening euro zone sovereign debt crisis.The loan was twice oversubscribed, with almost 25 other banks joining the transaction, following an upsize of 300 million euros, according to Thomson Reuters LPC data.In addition to the 1.75 billion zloty secured bridge to bond and the 1.9 billion euro senior term loans, the total debt package also includes a 900 million euro subordinated bridge to high-yield bond and a 352 million euro Payment-in-Kind (PIK) note, according to Thomson Reuters LPC.The PIK could be reduced by around 125 million euros after an investment from The European Bank of Reconstruction and Development (EBRD), which is pending approval.Polkomtel couldn’t immediately be reached for comment. ($1 = 3.112 zlotys) ($1 = 0.725 Euros)
Schumacher started out as a costume designer for Woody Allen, then helped create The Brat Pack with such seminal hit films as “The Lost Boys” and “St. Elmo’s Fire,” before going on to direct “Batman Forever,” “The Client” and “Phone Booth.”Schumacher’s latest film “Trespass,” due to hit theaters on Friday, is a tense, twisting thriller starring Oscar winners Nicholas Cage and Nicole Kidman as a wealthy couple facing the nightmare of a home invasion robbery.The 72 year-old director spoke with Reuters about making the film, his long career and his own nightmares on set.Q: You obviously love making thrillers like this: “Phone Booth,” “8mm” and “The Number 23.” What’s the secret to making a great one?A: “First, you need a great premise, and this has the primal fear we all have of someone breaking into your home in the middle of the night. Then you ratchet up the tension and hopefully keep everyone on the edge of their seats.”But I also like to make films with lots of layers, even if they’re not readily apparent. So this is also about class warfare and the sorry state of the American dream today. In fact, I saw Nic Cage’s character and the gang’s leader as being two sides of the same coin. They’ve both over-reached for that dream and been foolish and landed in big trouble. It’s what’s happened in this country today. People had to have the big house, the jewelry, the paintings, and many were encouraged by our corrupt financial system, but simply couldn’t afford it.”Q: You also like making films about flawed characters.A: “That’s true. I’ve worked in a lot of genres, but I do like to take flawed people and then heap stress on them and see if it’ll make ‘em or break ‘em.”Q: You’ve worked with both your stars before, Nic in “8mm,” Nicole in “Batman Forever.” What did they bring to this film?”A: “I’ve known Nicole since right after she did “Dead Calm” in ‘89, and I’ve been in love with her since then. She came to my house and was very shy but just stunning, and we became good friends. Same with Nic. I’ve know him since he was a teenager, and like Jim Carrey, he was always too special and quirky to put in my ensemble movies. They both do the thing they do better than anyone else, and they added a lot to their characters in the rehearsals and rewrites.”And this is the kind of movie, like ‘Phone Booth,’ you can’t script it out. You get seven stressed-out people in a room and (things are) going to happen! No one’s going to just stand there and recite their lines in turn. It doesn’t work that way. There’s a lot of overlapping dialogue, like a Robert Altman film. I was very influenced by him back in my heavy drug days in the late ’60s. His approach was so revolutionary back then, and his use of ensemble casts.”Q: How do you look back on your career?A: “Hollywood was very different back then. It was a much smaller industry, and I knew all the studio heads by name even though I was the poorest person in the room. I started off making $200 a week doing costumes, and I was coming off my intravenous drug days, and I’d have worked for even $5. I grew up in Queens behind a movie theater, and I was always in love with movies and actors. I think I’m a very cast-dependent director, and I think I’ve had the career I’ve had because of my casts. I may not be a genius director, but I’ll put my casts up against anyone’s!”Q: What did you learn from Woody Allen?A: “The big lesson was, you must write in order to direct. So I did, and sold a lot of scripts like “Car Wash,” which they wouldn’t let me direct. But it was a huge hit, and then I got a break and was offered my first feature, ‘The Incredible Shrinking Woman.‘“Q: You’ve made two dozen films. Any favorites?A: “No, they’re like children — all different, and you love them all equally. Sometimes the nightmare ones are the ones you learn most from. Looking back, I think I was the wrong director for ‘Dying Young’ with Julia Roberts. I’d just done ‘Flatliners’ with her and was mad about her. Still am. But I don’t think I’m the greatest love story director, and it was also a very veiled movie about AIDS. We talked about that a lot. It was a difficult project.”Q: What about difficult stars. Ever had a nightmare experience?A: “There’s a couple I’d never work with again. Val Kilmer, though he was a fabulous Batman — sexy, dark, great. His reputation preceded him. And I wasn’t alone. Even Ron Howard came out about him, which really surprised me as he’s much more of a gentleman than I am! I haven’t really seen Val since back then, and don’t know what’s happened to his life since then. I hope I’ve grown, I hope he’s grown. That’s another great thing Woody Allen taught me. He said to me back in ‘73: ‘Success gives people permission to be exactly who they were always supposed to be; the good get better, and the worst get worser.’ I’ve never forgotten that, and it’s so true!”