Uber Returns to Bond Market With Investment-Grade Sale
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Uber Technologies Inc. is tapping the U.S. investment-grade bond market Sept. 8 for its first blue-chip debt sale this year.
The ride-hailing firm is selling bonds in as many as two parts, including a security as long as 10 years, a person with knowledge of the deal said. Initial price discussions for the bond are in the area of 1.1 percentage point above similarly dated Treasuries, the person said, asking not to be identified disclosing private details.
The sale represents Uber’s second as a blue-chip company after it tapped investors for $4 billion around a year ago. The proceeds from the Sept. 8 sale are set to be used for general corporate purposes.
The company is among about a dozen selling investment-grade bonds on Sept. 8, extending a busy period for issuance. Yields on highly rated bonds are sitting at their lowest level this year, and risk premiums remain historically tight, making it a favorable environment for borrowers.
Barclays Plc, Goldman Sachs Group Inc. and JPMorgan Chase & Co. are managing the bond sale for Uber. The debt carries expected ratings of Baa1 from Moody’s Ratings, BBB from S&P Global Ratings and BBB+ from Fitch Ratings.
Uber Freight ranks No. 14 on the Transport Topics Top 100 list of the largest logistics companies in North America.
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