Uber prices USD1 billion note offering linked to Aurora stock

14th May 2025 14:25

(Alliance News) - Uber Technologies Inc on Tuesday said it has priced USD1.0 billion in 0.0% exchangeable senior notes due 2028, offering investors exposure to shares of autonomous vehicle firm Aurora Innovation Inc.

The San Francisco-based ride-hailing and delivery company said the notes were sold in a private placement to qualified institutional buyers and are exchangeable into either cash, Aurora shares, or a combination of both at Uber's discretion.

Each USD1,000 note will initially be exchangeable for 117.6471 Aurora shares – an implied price of USD8.50 per share.

The deal includes an option for the initial purchaser to buy an additional USD150 million in notes. Closing is expected on May 20.

The notes, which mature on May 15, 2028, will not bear interest and will be Uber's senior obligations, secured by a first-priority lien on shares of Aurora common stock held by Uber subsidiary Neben Holdings LLC. Neben will guarantee the notes on a limited recourse basis.

Uber may redeem the notes after May 21, 2027, if the value of Aurora stock rises at least 30% above the exchange price for 20 out of 30 trading days. The company estimates net proceeds of around USD978.9 million, or up to USD1.13 billion if the full overallotment is exercised.

Proceeds will be used for general corporate purposes, potentially including strategic investments, Uber said, though no specific uses were detailed.

Uber shares were down 1.0% at USD90.82 during premarket trading in New York on Wednesday. Aurora shares were down 18% at USD5.98.

By Eva Castanedo, Alliance News reporter

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