Uber Technologies Inc. has made its debut in the US investment-grade bond market, marking a significant milestone for the company as it transitions into a blue-chip status. The tech giant raised $4 billion through a bond sale, split into three tranches, with the longest offering being a 30-year bond priced 1.3 percentage points over Treasury yields, down from an initial talk of 1.6 percentage points.
Investor demand was robust, with early indications showing around $8 billion in interest. Morgan Stanley, BofA Securities Inc., and JPMorgan Chase & Co. led the transaction. The proceeds from this bond offering are expected to be used for repaying approximately $1.97 billion in outstanding loans, redeeming $1.5 billion worth of 8% senior notes due in 2026, and supporting general corporate needs.
Uber’s move into the investment-grade bond market follows a credit rating upgrade by S&P Global Ratings, Fitch Ratings, and Moody’s, reflecting the company’s improved profitability, double-digit bookings, and growth. Analysts anticipate that Uber’s enhancing free cash flow will further bolster its credit ratings in the coming years.
Uber did not provide immediate comment on the offering, and the managing banks also declined to comment.
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