Summary
Uber Technologies, Inc. (UBER) filed an 8-K on December 10, 2020, to report the completion of its private offering of $1.0 billion in aggregate principal amount of 0% Convertible Senior Notes due 2025. The offering was upsized with an additional $150.0 million purchased by the initial purchasers. These notes are general senior, unsecured obligations of the company and will mature on December 15, 2025, unless converted, redeemed, or repurchased earlier. The notes are convertible under specific conditions, including if the stock price exceeds 130% of the conversion price for a sustained period, or under certain trading price thresholds. The initial conversion price is approximately $80.84 per share, representing a premium of about 52.5% to the stock price on December 8, 2020. Uber intends to use the net proceeds of approximately $1.136 billion for working capital or general corporate purposes, which may include acquisitions or strategic transactions.
Key Highlights
- 1Completion of a $1.0 billion (upsized to $1.15 billion with option exercise) offering of 0% Convertible Senior Notes due 2025.
- 2Notes are unsecured, general senior obligations of Uber.
- 3Maturity date is December 15, 2025, with conversion options tied to stock price performance and trading conditions.
- 4Initial conversion price of approximately $80.84 per share, a significant premium (52.5%) to the December 8, 2020, closing price.
- 5Net proceeds of approximately $1.136 billion are intended for working capital and general corporate purposes, including potential acquisitions or strategic transactions.
- 6The offering was made to qualified institutional buyers under Rule 144A of the Securities Act, exempting it from standard registration requirements.
- 7The Indenture includes customary covenants and events of default, with specific provisions for bankruptcy and insolvency.