Summary
Uber Technologies, Inc. (UBER) announced on March 14, 2023, a significant refinancing of its existing term loan facility. The company successfully borrowed $761 million in aggregate principal amount of "Refinancing Loans," which were used to refinance and reprice all outstanding 2021 Refinancing Term Loans. This strategic move extends the maturity date for a portion of its debt from February 25, 2027, to March 3, 2030, aligning with the maturity of the overall 2023 Refinancing Term Loans. Additionally, Uber has secured a lower interest rate spread on this debt, reducing it from LIBOR plus 3.50% to SOFR plus 2.75% per annum.
Key Highlights
- 1Uber refinanced $761 million of its existing term loans.
- 2The maturity date for approximately $761 million in debt was extended from February 25, 2027, to March 3, 2030.
- 3The applicable interest rate spread on the refinanced debt was reduced from LIBOR + 3.50% to SOFR + 2.75%.
- 4The refinancing is part of an amendment to the existing 2016 Term Loan Agreement, creating an Amended Term Loan Agreement.
- 5The Amended Term Loan Agreement includes a $1.75 billion tranche of term loans and the newly issued Refinancing Loans, collectively referred to as the 2023 Refinancing Term Loans.
- 6The debt is secured by equity interests of certain material subsidiaries and intellectual property.
- 7The company can voluntarily prepay these loans without a premium, except for a 1% premium on repricing within six months of March 3, 2023.