By Dhirendra Tripathi
Investing.com – Uber stock (NYSE:UBER) was down 0.6% in Monday’s premarket trading following the company’s decision to raise $1.5 billion in debt via an issue of senior notes.
The paper will be due 2029. At the end of June, net of current portion, Uber had a long-term debt of $7.79 billion.
Uber intends to use the net proceeds from this offering to finance a portion of the consideration payable in cash, and certain related fees and expenses incurred, in connection with the acquisition of Transplace by Uber Freight, a subsidiary of Uber.
In a deal signed last month with TPG Capital, the private equity platform of alternative asset firm TPG, Uber Freight will buy Transplace for approximately $2.25 billion, comprising up to $750 million in common stock of its parent and the remainder in cash.
The acquisition is part of Uber’s efforts to look for revenue streams beyond cab aggregation. The Uber Freight-Transplace combine will create one of the largest managed transportation and logistics networks in the world.
Uber Falls On Plan To Raise $1.5 Billion Debt To Fund Buyout
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