By Douglas MacMillan Stock Market Quotes, Business News, Financial News from http://commodity-market-news.com
Uber Technologies Inc. has raised $1.15 billion from a new high-yield loan, according to a person familiar with the matter, as the ride-hailing company stockpiles cash to ward off regulatory and competitive threats around the world.
The new leveraged loan, Uber’s first, brings the amount raised in debt and equity to more $15 billion and helps its existing shareholder base avoid stock dilution.
Uber will pay a yield of about 5% on the leveraged loan, this person said. The Wall Street Journal first reported last month that Uber hired banks to issue debt of up to $2 billion with a yield of 4% to 4.5%.
The average yield of new leveraged loans ranges from 3.9% to 5.5%, according to data from S&P Global Market Intelligence LCD. First-time issuers typically pay higher yields.
Uber is getting more creative in seeking out unorthodox sources of capital to fuel its rapid global expansion. The debt deal comes a month after the company closed a $3.5 investment from Saudi Arabia’s sovereign-wealth fund, part of the single-largest injection into a venture-backed company of all time.
Maureen Farrell and Matt Wirz contributed to this article.
Write to Douglas MacMillan at douglas.macmillan[a]wsj.com
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