Uber Technologies, Inc. (UBER, Financial) has successfully completed its private offering of $1.15 billion in aggregate principal amount of 0.0% Exchangeable Senior Notes due 2028. This financial maneuver, finalized on May 20, 2025, includes the full exercise of an option by the initial purchaser to acquire an additional $150 million in notes. The offering was conducted under an indenture agreement involving Uber, its subsidiary Neben Holdings, LLC, and U.S. Bank Trust Company, National Association as trustee.
The net proceeds from this offering amount to approximately $1,125.9 million. Uber plans to utilize these funds for general corporate purposes, potentially including strategic investments, although specific allocations have not been designated at this time.
The notes, which do not bear regular interest and will not accrete, are set to mature on May 15, 2028. They are exchangeable into cash, units of reference property, or a combination thereof, at Uber's discretion. Initially, each unit of reference property comprises one share of Class A common stock of Aurora Innovation, Inc. The exchange rate is set at 117.6471 units per $1,000 principal amount of notes, equivalent to an initial exchange price of approximately $8.50 per share of Aurora common stock.
These senior obligations are secured by first-priority liens on certain pledged reference property held by the Guarantor, primarily consisting of shares of Aurora common stock. The notes are guaranteed on a limited recourse basis to the extent of the collateral.
Uber retains the option to redeem the notes for cash starting May 21, 2027, under specific conditions related to the value of the reference property. Additionally, holders may require Uber to repurchase the notes in the event of certain corporate changes involving Uber or Aurora.
This strategic financial initiative underscores Uber's commitment to maintaining corporate flexibility and exploring potential growth opportunities. For more detailed insights into Uber's financial strategies and market implications, visit GuruFocus.com.
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