Uber: $500 Million In Senior Notes Offering Priced

By Amit Chowdhry ● September 14, 2020
  • Today Uber Technologies, Inc. (NYSE: UBER) announced it priced a $500 million principal amount of 6.25% Senior Notes due 2028

Today Uber Technologies, Inc. (NYSE: UBER) announced it priced a $500 million principal amount of 6.25% Senior Notes due 2028. The notes are being offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 as amended and to non-U.S. persons in accordance with Regulation S under the Securities Act. The sale of the notes is expected to close around September 16, subject to the satisfaction of customary closing conditions.

The notes are going to accrue interest payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2021, at a rate of 6.25% per year. And the notes will be guaranteed by one of Uber’s subsidiaries Rasier, LLC as of the closing date and thereafter will be guaranteed by all of Uber’s domestic restricted subsidiaries that are or become borrowers or guarantors under its 2016 senior secured term loan B facility. These notes and the guarantees will be Uber’s and the guarantors’ general unsecured senior obligations.

Uber plans to use the net proceeds from this offering — along with cash on hand — to redeem all of the company’s 7.5% Senior Notes due 2023,of which $500 million aggregate principal amount currently is outstanding.

Disclosure: I own a small number of Uber shares.