By Paul A. Harris
Portland, Ore., May 13 – Uber Technologies Inc. priced an upsized $900 million issue of five-year senior notes (B3/CCC+) at par to yield 7½% on Wednesday, according to market sources.
The notes will be guaranteed by one of Uber’s subsidiaries Rasier, LLC.
Morgan Stanley & Co. LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays and HSBC Securities (USA) Inc.
The issue size increased from $750 million.
The yield printed in the middle of yield talk in the 7½% area and on the tight end of the 7½% to 7¾% initial guidance.
The San Francisco-based ride-hailing service plans to use the proceeds for general corporate purposes, including working capital.
| Issuer: | Uber Technologies Inc.
|
| Guarantor: | Rasier, LLC
|
| Amount: | $900 million, increased from $750 million
|
| Maturity: | May 15, 2025
|
| Securities: | Senior notes
|
| Left bookrunner: Morgan Stanley & Co. LLC (bill and deliver)
|
| Joint bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Barclays and HSBC Securities (USA) Inc.
|
| Co-managers: | Deutsche Bank Securities Inc., RBC Capital Markets LLC and SMBC Nikko Securities America Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 716 bps
|
| First call: | May 15, 2022 at 103.75
|
| Trade date: | May 13
|
| Settlement date: | May 15
|
| Ratings: | Moody’s: B3
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7½% area
|
| Marketing: | Drive-by
|
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