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Uber launches $1.43B leveraged loan to refinance 2025 debt

Pitchbook
·2 min read

Uber Technologies is in the market with a $1.433 billion term loan B that will be used to refinance in full the company’s existing facility due in 2025, according to sources. A lender call is scheduled for today at 11:40 a.m. ET, and commitments to the deal are due by noon ET on Wednesday, March 1.

Price talk for the seven-year TLB is Sofr+CSA+300-325, with a 0% floor and an OID in the range of 99-99.5. The CSA is 10 bps. At talk, the yield to maturity is around 8.25%-8.62%.

Morgan Stanley is left led arranger on the deal, and the bookrunner group includes Barclays, among others.

As of Dec. 31, there was $1.433 billion outstanding of Uber’s term loan B due April 2025 as well as $1.078 billion of its TLB due February 2027, both of which are priced at L+350 with a 0% floor. The loans were issued as part of a February 2021 refinancing. In addition to the term loans, Uber’s outstanding debt includes five issues of senior unsecured notes ranging in maturity between 2025-2029 and an issue of convertible notes due 2025, a company filing shows.

Moody’s today upgraded Uber’s corporate rating to Ba3, from B1, its senior secured term loan rating to Ba2, from Ba3, and its senior unsecured rating to B1, from B2. The proposed term loan was assigned a rating of Ba2. Also, the outlook was changed to positive, from stable.

In its ratings report, the agency said the upgrade reflected "substantial improvements in profitability and cash flow generation during 2022 that Moody's believes will be sustained."

On Feb. 16, S&P Global Ratings upgraded the issuer rating of Uber to B+, from B, and the outlook is positive. At the same time, the senior secured issue-level rating was raised to BB-, from B+, and the unsecured rating to B, from B-. The 2 senior secured recovery rating and 5 unsecured recovery rating were unchanged.

San Francisco-based Uber Technologies is a multinational transportation network company offering services that include peer-to-peer ride-sharing, ride-service hailing, food delivery and bicycle sharing.

Featured image by Jeramey Lende/Shutterstock



This article originally appeared on PitchBook News