Monday saw Uber Technologies, Inc. (NYSE:UBER) complete a significant funding initiative, raising $4 billion through the public offering of senior notes. The transportation giant issued $1.25 billion in 4.300% senior notes due 2030, $1.5 billion in 4.800% senior notes due 2034, and $1.25 billion in 5.350% senior notes due 2054.
The company stated that the proceeds from the notes, which are unsecured obligations of Uber, will be used primarily to repay existing debt and for general corporate purposes.
Specifically, Uber plans to use a portion of the funds to repay all outstanding loans under its term loan agreement, which had a principal amount of approximately $1.97 billion as of June 30, 2024.
Additionally, Uber intends to redeem its 8.00% senior notes due in 2026, with $1.5 billion in principal outstanding as of the same date.
The offering was conducted under an existing registration statement and involved major financial institutions as underwriters, including Morgan Stanley & Co (NYSE:MS). LLC, BofA Securities, Inc., and J.P. Morgan Securities LLC.
Uber's filing with the Securities and Exchange Commission (SEC) also outlines the involvement of U.S. Bank Trust Company, National Association, as trustee, and the terms of the indenture governing the notes.
The company emphasized that this report should not be construed as a notice of redemption for the 8.00% senior notes due in 2026. Furthermore, Uber's statements regarding the use of proceeds from the notes offering are forward-looking and are subject to risks and uncertainties that could cause actual results to differ materially.
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