Uber Announces Pricing of $1.5 Billion Senior Notes Offering

Rhea-AI Summary

Uber Technologies, Inc. (NYSE: UBER) has priced $1.5 billion of 4.50% Senior Notes due 2029, aimed at qualified institutional buyers and non-U.S. persons. The notes, which will accrue interest semiannually from February 15, 2022, will be guaranteed by Uber's subsidiaries. Proceeds are intended for financing cash consideration related to the acquisition of Transplace by Uber Freight. The offering is subject to customary closing conditions and hasn't been registered under the Securities Act.

Positive

• Successfully priced $1.5 billion Senior Notes, enhancing liquidity.
• Proceeds will finance the strategic acquisition of Transplace, bolstering Uber Freight.

Negative

• Notes are secured by general unsecured obligations, adding financial liabilities.
• Forward-looking statements indicate risks and uncertainties related to the acquisition and market conditions.

Uber Technologies, Inc. (NYSE: UBER) today announced the pricing of $1.5 billion principal amount of 4.50% Senior Notes due 2029 (the “notes”). 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 (the “Securities Act”), and to non-U.S. persons in accordance with Regulation S under the Securities Act. The sale of the notes is expected to close on or about August 12, 2021, subject to the satisfaction of customary closing conditions.

The notes will accrue interest payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2022, at a rate of 4.50% per year. 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 (as amended). The notes and the guarantees will be Uber’s and the guarantors’ general unsecured senior obligations.

Uber intends to use the net proceeds from this offering to finance a portion of the consideration payable in cash, and certain related fees and expenses incurred, in connection with the acquisition of Transplace by Uber Freight, a subsidiary of Uber.

The notes have not been registered under the Securities Act or any state securities laws, and unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.

This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements concerning the expected closing of the offering of the notes and the anticipated use of the net proceeds from the offering. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “will,” or similar expressions and the negatives of those words. Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that Uber expects. These risks and uncertainties include, among others, uncertainties and other factors related to the intended use of proceeds from the offering and sale of the notes, risks and uncertainties related to the pending acquisition of Transplace and market risks, trends and conditions. These and other risks are more fully described in Uber’s filings with the Securities and Exchange Commission, including in the section titled “Risk Factors” in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2021. In light of these risks, you should not place undue reliance on such forward-looking statements. Forward-looking statements represent Uber’s beliefs and assumptions only as of the date of this press release. Except as required by law, Uber disclaims any obligation to update these forward-looking statements as a result of new information, future events, changes in expectations or otherwise.

About Uber

Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 25 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.

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FAQ

What are the terms of Uber's recent Senior Notes offering?

Uber announced $1.5 billion of 4.50% Senior Notes due 2029, accruing interest semiannually.

How will Uber use the proceeds from the Senior Notes?

The proceeds will finance the acquisition of Transplace by Uber Freight.

When will Uber's Senior Notes offering close?

The offering is expected to close on or about August 12, 2021.

What are the risks associated with Uber's Senior Notes?

The offering includes forward-looking statements that involve risks related to the acquisition and market conditions.

Who will guarantee Uber's Senior Notes?

The notes will be guaranteed by Rasier, LLC and other domestic restricted subsidiaries.