Uber Sells $1.2 Billion in Junk Bonds to Help Fund its Acquisition of Dubai-based Careem

Uber said it would buy Careem in March, marking the largest deal of Chief Executive Officer Dara Khosrowshahi’s tenure. The deal is expected to …
Uber Sells $1.2 Billion in Junk Bonds to Help Fund its Acquisition of Dubai-based Careem

resource from: Bloomberg

Ride-hailing giant Uber Technologies is selling junk bonds to help finance its acquisition of Careem in its first debt offering as a public company.

Uber sold a larger-than-expected $1.2 billion of bonds rated in the lowest tier of junk. Strong demand for the notes, which mature in 2027, allowed Uber to raise more than the $750 million it originally targeted. The ride-hailing company priced the bond at a yield of 7.5% after receiving orders worth around $2 billion, according to Bloomberg.

Junk bonds are typically issued by a company seeking to raise capital quickly. The proceeds of the bonds will be used to help fund its $3.1 billion purchase of Dubai-based ride-hailing company Careem, Uber’s biggest competitor in the Middle East region.

It’s only the second bond sale in Uber’s 10-year history, and the first since it went public earlier this year. The firm issued $2 billion of debt in its debut offering last October, increasing the size of the two-part deal as orders for the private placement swelled.

Uber announced in March that is reached an agreement to acquire Careem for $3.1 billion, consisting of $1.7 billion in convertible notes and $1.4 billion in cash. The transaction is expected to close in Q1 2020. Careem, which operates in over 100 cities in the Middle East, Africa and South Asia, was valued at over $2 billion as of 2018.

Uber is acquiring all of Careem’s mobility, delivery, and payments businesses across the greater Middle East region, ranging from Morocco to Pakistan, with major markets including Egypt, Jordan, Pakistan, Saudi Arabia, and the United Arab Emirates.

Upon closing, Careem will become a wholly-owned subsidiary of Uber, preserving its brand.

Uber marketed its latest offering broadly to investors as the newly public company struggles to make money. Uber said it would buy Careem in March, marking the largest deal of Chief Executive Officer Dara Khosrowshahi’s tenure. The deal is expected to close in the first quarter of 2020.

Bloomberg reports that Morgan Stanley, Bank of America, Goldman Sachs Group, Citigroup, Barclays, HSBC Holdings, SunTrust Banks and Royal Bank of Canada are managing the bond sale.

Since becoming a public company in May, Uber’s stock price is down about 25% since its IPO of $45 per share and the company has been burning through cash at a high rate. The stock closed at $33.25 on Friday.

Last month, Uber reported a $5.2 billion loss for the second quarter of this year.

resource from: Bloomberg

Uber offers $750-mn junk bonds to help finance acquisition of Careem

Uber said it would buy Careem in March, marking the largest deal of Chief Executive Officer Dara Khosrowshahi’s tenure. It’s expected to close in the …

Uber Technologies is selling junk bonds to help finance its acquisition of Careem in its first debt offering as a public company. The ride-sharing company is looking to issue $750 million of debt due in 2027, according to a statement Thursday.

Proceeds will be used to help fund its $3.1 billion purchase of Careem, a Dubai-based ride-hailing competitor. It’s only the second bond sale in Uber’s 10-year history, and the first since it went public earlier this year. The firm issued $2 billion of debt in its debut offering last October, increasing the size of the two-part deal as orders for the private placement swelled.

Uber is marketing its latest offering broadly to investors. Uber said it would buy Careem in March, marking the largest deal of Chief Executive Officer Dara Khosrowshahi’s tenure. It’s expected to close in the first quarter of 2020.

Morgan Stanley, Bank of America, Goldman Sachs Group, Citigroup, Barclays, HSBC Holdings, SunTrust Banks and Royal Bank of Canada are managing the bond sale, according to a person familiar with the matter.

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Uber Will Base Logistics Division at Old Post Office

… industry, and there is no better place to continue to grow our teams and open our dedicated Freight HQ,” said Uber CEO Dara Khosrowshahi.

September 10, 2019

With plans to hire more than 2,000 in Chicago, Uber Technologies has dedicated its recently-signed Old Post Office space as the national headquarters for its Uber Freight division. The 463,000-square-foot lease makes Chicago Uber’s second largest corporate location after San Francisco.

Uber Freight HQ will be focused on Freight engineering operations, sales and account management. “Chicago is the heart of America’s transportation and logistics industry, and there is no better place to continue to grow our teams and open our dedicated Freight HQ,” said Uber CEO Dara Khosrowshahi.

Added Andrea Zopp, president and EO of World Business Chicago, “From major companies like Uber to rapidly growing start-ups, Chicago’s tech economy is creating new jobs for our incredibly diverse talent pool.”

Uber is partnering with the City of Chicago and the Chicago Cook Workforce Partnership, which will receive more than $80,000 in grant funding as part of Uber’s Community Impact Initiative.

Connect Chicago Fall 2019 will take place Oct. 29 in Chicago. For more information, or to register, click here.

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Uber Technologies (NYSE:UBER) PT Raised to $54.00

Uber Technologies (NYSE:UBER) had its target price hoisted by research analysts at Raymond James from $50.00 to $54.00 in a research note …

Uber Technologies logoUber Technologies (NYSE:UBER) had its target price hoisted by research analysts at Raymond James from $50.00 to $54.00 in a research note issued on Friday, August 9th, Marketbeat Ratings reports. The brokerage currently has an “outperform” rating on the ride-sharing company’s stock. Raymond James’ target price indicates a potential upside of 61.53% from the stock’s current price.

UBER has been the topic of several other reports. Daiwa Capital Markets initiated coverage on shares of Uber Technologies in a research note on Tuesday, June 25th. They set a “neutral” rating on the stock. Needham & Company LLC set a $52.00 price target on shares of Uber Technologies and gave the stock a “buy” rating in a research note on Thursday, July 11th. HSBC initiated coverage on shares of Uber Technologies in a research note on Monday, July 22nd. They set a “hold” rating and a $49.00 price target on the stock. DA Davidson decreased their price target on shares of Uber Technologies to $46.00 and set a “buy” rating on the stock in a research note on Friday, May 31st. Finally, Loop Capital initiated coverage on shares of Uber Technologies in a research note on Tuesday, June 4th. They set a “buy” rating on the stock. Nine analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $53.98.

UBER traded down $0.57 on Friday, reaching $33.43. The company had a trading volume of 7,871,408 shares, compared to its average volume of 13,378,545. The business has a 50 day moving average of $40.81. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.57 and a quick ratio of 2.57. Uber Technologies has a 52-week low of $32.92 and a 52-week high of $47.08.

Uber Technologies (NYSE:UBER) last announced its earnings results on Thursday, August 8th. The ride-sharing company reported ($4.72) earnings per share for the quarter, missing analysts’ consensus estimates of ($3.33) by ($1.39). The company had revenue of $3.17 billion for the quarter, compared to analyst estimates of $3.39 billion. Uber Technologies’s quarterly revenue was up 14.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($2.01) earnings per share. On average, equities analysts anticipate that Uber Technologies will post -7.2 earnings per share for the current year.

A number of large investors have recently added to or reduced their stakes in UBER. Legacy Advisors LLC bought a new stake in Uber Technologies in the second quarter valued at $26,000. Avestar Capital LLC bought a new stake in shares of Uber Technologies during the 2nd quarter valued at $27,000. Sound Income Strategies LLC bought a new stake in shares of Uber Technologies during the 2nd quarter valued at $28,000. Signaturefd LLC bought a new stake in shares of Uber Technologies during the 2nd quarter valued at $31,000. Finally, Regal Wealth Group Inc. bought a new stake in shares of Uber Technologies during the 2nd quarter valued at $32,000. Institutional investors and hedge funds own 23.57% of the company’s stock.

About Uber Technologies

Uber Technologies, Inc develops and supports proprietary technology applications that enable independent providers of ridesharing, and meal preparation and delivery services to transact with end-users worldwide. The company operates in two segments, Core Platform and Other Bets. Its driver partners provide ridesharing services through a range of vehicles, such as cars, auto rickshaws, motorbikes, minibuses, or taxis, as well as based on the number of riders under the UberBLACK, UberX, UberPOOL, Express POOL, and Uber Bus names; and restaurant and delivery partners provide meal preparation and delivery services under the Uber Eats name.

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Uber Shares Skid After $5.2 Billion Q2 Loss, Revenue Miss; Lyft Pulled Lower

Uber Technologies (UBER) shares tumbled in pre-market trading Friday after the world’s biggest ride-hailing group posted a wider-than-expected …

Uber Technologies (UBER) shares tumbled Friday after the world’s biggest ride-hailing group posted a wider-than-expected second quarter loss of $5.24 billion and cautioned that more red ink would follow in the months ahead.

Uber said its loss for the three months ending in June, the second quarterly report as a public company, came in at $4.72 per share, well ahead of the $2.70 tally forecasts by analysts that cover the group. Overall revenues, Uber said, rose 14% from last year to $3.17 billion, but again fell shy of the Street consensus forecast of $3.32 billion.

Looking into 2019, Uber said increased spending and expansion costs will likely mean the group posts a full-year loss of between $3 billion and $3.2 billion, but nonetheless sees gross bookings for the ride-sharing platform, which topped 100 million monthly active users in the second quarter, rising to an estimated range of between $65 billion and $67 billion.

“While you often have to make trade-offs in life, we believe that we can continue to invest aggressively and grow while driving efficiencies from scale by building great tech to improve effectiveness and from good old-fashioned focus on the bottom line,” CEO Dara Khosrowshahi told investors on a conference call late Thursday. “I think you know that the balance between the top and the bottom line is more of an art rather than a science. So I if I told you that we had kind of the scientific formulae that we’re solving for here, we’d be lying to you,”.

“We think that as we look at our marketing spend, our incentive spend, how we can leverage the business going forward, we think that there’s the opportunity to scale our expenses or be more efficient with our incentive spend or be more efficient with our marketing spend really doubled down on less, smaller kind of projects and doubling down on the channels that are really working for us,” he added.

Uber shares were marked 9.63% lower at the opening bell Friday to change hands at $38.83 each, a move that leaves the stock some 13.7% south of its May 10 IPO price of $45 per share.

Uber’s ride-hailing revenues grew just 2% from last year to $2.3 billion, the company said, although the average revenue per rider rose 20%. while Uber Eats, its food-deliver business, saw revenues rise 72% to $595 million.

The group’s overall results, however, offer a sharp contrast to its main rival, Lyft Inc. LYFT, which said yesterday that its loss for the three months ending in June was tabbed at 68 cents per share, notably lower than the $8.37 per share loss it booked last year and 32 cents inside the Street consensus forecast.

Group revenues, as well, impressed analysts’, rising 72% from the same period last year to a forecast-beating $867.3 million. Lyft said revenue per rider rose 22% from last year to $39.77, while the number of overall customers surged 41% to nearly 22 million in its first quarterly report as a public company.

Lyft shares were marked 1.61% lower in pre-market trading Friday, after posting a 3% gain Thursday, to indicate an opening bell price of $61.10 each.

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