Uber to offer $1.2 billion of five-year convertible bonds

By Ciara Linnane

Uber is issuing convertible bonds to pay down outstanding debt

Uber Technologies Inc. (UBER) said Monday it is planning to offer $1.2 billion of five-year convertible bonds to raise the money to repay, redeem or repurchase outstanding debt.

The ride-sharing company said it would use part of the proceeds to cover the cost of entering into capped call transactions that aim to reduce dilution upon conversion into equity.

The rest will be used to pay down outstanding debt, including $1 billion of 7.500% notes that mature in 2025.

Uber has more than $3 billion of debt that matures in 2025, as the following chart from data solutions provider BondCliQ Media Services shows.

The bonds have seen net selling over the last two weeks, as the following chart shows.

Bonds saw net selling early Monday, before the buyers showed up.

Meanwhile, bond prices have been mostly rising over the last two weeks.

Uber's stock was up 1.4% premarket but has gained 123% in the year to date, while the S&P 500 has gained 18%.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-20-23 1442ET

Copyright (c) 2023 Dow Jones & Company, Inc.