Uber Brings $900 Million Bond Sale After Grubhub Deal Report
Uber to Sell $750 Million of Bonds After Grubhub Deal Report
(Bloomberg) -- Uber Technologies Inc. brought a $900 million bond sale, just a day after a report said it has made an offer to acquire food delivery company Grubhub Inc.
That’s up from a planned $750 million, which may be used for acquisitions among other general corporate purposes, according to a statement Wednesday. The five-year notes, which can’t be bought back for two years, will yield 7.5%, according to people with knowledge of the matter, who asked not to be named discussing a private transaction.
Read more: Uber Fueling Up With Liquidity for Grubhub M&A: Credit React
A deal with Grubhub would combine two of the largest food-delivery apps in the U.S. as the coronavirus drives a surge in demand, Bloomberg reported Tuesday. While neither company confirmed, they both acknowledged they’re always looking for opportunities to provide value to their businesses.
S&P Global Ratings grades Uber’s new unsecured notes as CCC+, or seven levels below investment grade. Moody’s Investors Service rates them B3, one step higher than S&P.
Morgan Stanley, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., Barclays Plc and HSBC Holdings Plc are managing the bond sale, according to the people.
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