New York - Uber is seeking $1.25bn in its second foray in
the US leveraged loan market, according to people with knowledge of
The ride-hailing company has begun approaching loan investors
directly to borrow the funds, instead of going through banks, and has
scheduled a March 9 meeting to discuss the financing, said the people,
who asked not to be identified because the information isn’t public.
Uber last tapped the loan market in 2016 for a $1.15bn
loan, a deal that was arranged by Morgan Stanley.
An Uber spokesperson confirmed the loan plan late on Wednesday.
Uber, which posted an annual
loss of $4.5bn this month, is an atypical issuer for the loan
market where decisions on how much to lend are typically tied to
borrower debt ratios using earnings before interest, taxes, depreciation
and amortisation, or Ebitda.
Uber’s adjusted pro-forma Ebitda for the
fourth quarter was negative $475m, according to documents seen by
The company is tapping a very receptive loan market where investors
are willing to gobble up new deals. Uber was given a blended valuation
of $54bn by a
SoftBank-led investor group. That makes it the biggest
venture-backed technology enterprise without a stock listing.
In addition to the 2016 loan, Uber also has a $2.2bn
credit line, according to data compiled by Bloomberg.