Uber Prices Upsized Offering Of $1.5 Bln Of Senior Notes

(RTTNews) - Uber Technologies, Inc. (UBER) said on Tuesday that it has priced an upsized offering of $1.5 billion of 0.875 percent convertible senior notes due 2028.

The offering, expected to be closed on or about November 24, was upsized from the previously announced $1.2 billion of convertible senior notes.

Uber has also granted the initial purchasers an option to purchase up to an additional $225 million of notes.

The ride-hailing services provider intends to use $122.25 million of the net proceeds from the notes offering to fund the cost of entering into the capped call transactions.

The company plans to use the rest of the proceeds to repay, redeem or repurchase outstanding indebtedness, including the redemption of its outstanding $1 billion 7.500 percent senior notes due 2025.

If the initial purchasers of the notes exercise their option to purchase additional notes, Uber expects to enter into additional capped call transactions with the option counterparties and to use the remainder of such net proceeds for general corporate purposes.

The cap price of the capped call transactions will initially be around $95.81 per share.