Uber Technologies Inc (NYSE:UBER) announced on Monday plans to offer $1.2 billion of five-year convertible bonds, targeting qualified institutional buyers, which are due in 2028.
The ride-sharing firm said it would use part of the proceeds to cover the cost of entering into capped call transactions that aim to reduce dilution upon conversion into equity.
Uber noted the remainder will be used to repay, redeem or repurchase outstanding debt, including $1 billion of 7.5% notes that mature in 2025.
The company added that it also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an additional $180.0 million total principal amount of the notes.
Shares of Uber Technologies slipped 2.5% in pre-market trading on Monday but have soared 115% year to date.
Contact Sean at sean@proactiveinvestors.com