Uber taps Europe's bond market for €4B in debut euro sale
What's the deal? Uber is raising about €4 billion through its first-ever euro bond sale, a five-part deal marketing fixed-rate debt with maturities from three to 20 years, Bloomberg NewsDealroom has a profile for this one. Try Dealroom → reported. The post-IPO debt sale marks the ride-hailing company's debut in Europe's bond market.
How is it priced? Investors are being guided to yields roughly 75 to 80 basis points above "mid-swaps" for the three-year notes and about 200 basis points above that benchmark for the 20-year bonds, according to Bloomberg. The extra spread is what investors demand for taking on Uber's company risk.
Why now? Selling several maturities at once lets Uber lock in financing over different timeframes in a single transaction. The euro-denominated deal gives it access to a new pool of investors beyond the US market.
The signal: At €4 billion, the raise ranks among the largest of its kind — sitting in the top 2% of post-IPO debt deals by companies in its sector and region. Turning to Europe's bond market signals Uber's growing appetite to diversify how it funds itself as it deepens its footprint on the continent.
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