By Abigail W. Adams
Portland, Me., Nov. 21 – Uber Technologies Inc. priced an upsized $1.5 billion of five-year convertible notes after the market close on Monday at par with a coupon of 0.875% and an initial conversion premium of 32.5%, according to a company news release and a market source.
Pricing came at the midpoint of revised talk for a coupon of 0.75% to 1% and in line with revised talk for an initial conversion premium of 32.5%.
Initial price talk was for a coupon of 0.75% to 1.25% and an initial conversion premium of 27.5% to 32.5%.
Barclays (lead left) and BofA Securities Inc. were bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $225 million.
ICR Capital LLC was financial adviser to the company.
The initial size of the offering was $1.2 billion with a greenshoe of $180 million.
The notes are non-callable until Dec. 5, 2026 and then subject to a 130% hurdle.
They are putable upon a fundamental change.
The notes will be settled in cash up to the principal amount with any remainder to be settled in cash, shares or a combination of both.
In connection with the offering, the company entered into capped call transactions with a cap price of $95.81, which represents a premium of 75% over the last reported sales price of stock.
Approximately $122.25 million of net proceeds will be used to cover the cost of the call spread with the remaining amount to be used for the repayment or redemption of outstanding debt, including the company’s $1 billion outstanding 7.5% senior notes due 2025, and for general corporate purposes.
Uber is a San Francisco-based ride-sharing technology company.
| Issuer: | Uber Technologies Inc.
|
| Amount: | $1.5 billion
|
| Greenshoe: | $225 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Dec. 1, 2028
|
| Bookrunners: | Barclays (lead left) and BofA Securities Inc.
|
| Financial adviser: | ICR Capital LLC
|
| Coupon: | 0.875%
|
| Price: | Par
|
| Yield: | 0.875%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $72.54
|
| Conversion rate: | 13.7848
|
| Call options: | Non-callable until Dec. 5, 2026 and then subject to a 130% hurdle
|
| Put options: | Upon a fundamental change
|
| Pricing date: | Nov. 20
|
| Settlement date: | Nov. 24
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 0.75% to 1% and initial conversion premium 32.5%
|
| Stock symbol: | NYSE: UBER
|
| Stock price: | $54.75 at market close Nov. 20
|
| Market capitalization: | $112.67 billion
|
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