Summary
Uber Technologies, Inc. (UBER) filed an 8-K on March 1, 2021, detailing a significant refinancing of its term loan debt. On February 25, 2021, the company entered into an amendment to its 2016 Term Loan Agreement, securing $2.56 billion in new loans. These funds were used to refinance and replace all outstanding debt under both the 2016 Term Loan Agreement and the 2018 Term Loan Agreement. This refinancing extends the maturity of a portion of its debt to February 2027, while the remainder matures in April 2025. The new debt carries interest rates tied to either LIBOR or an alternate base rate, with specific pricing tiers. The company also secured these obligations with equity interests of certain subsidiaries and intellectual property. This move is a key step in managing Uber's capital structure and extending its debt runway.
Key Highlights
- 1Uber refinanced $2.56 billion in aggregate principal amount of loans through an amendment to its 2016 Term Loan Agreement.
- 2The refinancing repays and replaces all outstanding loans under the 2016 Term Loan Agreement and the 2018 Term Loan Agreement.
- 3A portion of the refinanced debt now matures in February 2027, extending the maturity date from the original July 2023.
- 4The remaining portion of the refinanced debt retains its original maturity date of April 4, 2025.
- 5The new Refinancing Loans bear interest based on either the adjusted LIBOR Rate plus 3.50% or an alternate base rate plus 2.50%.
- 6The company can voluntarily prepay loans without a premium, except for a 1% premium on Refinancing Loans repaid within six months of February 25, 2021, in connection with a repricing.
- 7The obligations under the Amended Term Loan Agreement are guaranteed by Rasier, LLC and are secured by equity interests of certain material subsidiaries and intellectual property.