Uber Prices $1.0 Bln Exchangeable Senior Notes Offering
(RTTNews) - U.S.-based Uber Technologies, Inc. (UBER) on Tuesday announced the pricing of $1.0 billion principal amount of Exchangeable Senior Notes due 2028 in a private placement to qualified institutional buyers.
The notes would not bear regular interest, and the principal amount of the notes would not accrete.
Uber intends to use the net proceeds from the offering for general corporate purposes, which may include strategic investments. However, Uber has not designated any specific uses at this time.
Uber estimates that the net proceeds from the offering after deducting the initial purchaser's discount and estimated offering expenses payable by Uber would be approximately $978.9 million.
Uber has granted the initial purchaser of the notes an option to purchase up to an additional $150 million principal amount of the notes. In such a case, the net proceeds could be $1,125.9 million.
The sale of the notes is expected to close on May 20.
The notes would mature on May 15, 2028, unless earlier exchanged, redeemed or repurchased.
The notes would be exchangeable into cash, or, subject to conditions, units of reference property, or a combination of the two, at Uber's election. Initially, each unit of reference property would be one share of Class A common stock, par value $0.00001 per share, of Aurora Innovation, Inc.
The exchange rate would initially be 117.6471 units of reference property per $1,000 principal amount of notes which is equivalent to an initial exchange price of approximately $8.50 per share of Aurora common stock.
Uber may not redeem the notes prior to May 21, 2027. Uber may redeem for cash all or any portion of the notes, at its option, on or after May 21, 2027 subject to specified conditions.
The notes would be Uber's senior obligations and would be secured by first-priority liens on certain pledged reference property held by Uber's indirect wholly owned subsidiary, Neben Holdings, LLC.
No sinking fund is provided for the notes.
