Uber Is Said to Get Lender Nod to Reduce Leveraged Loan Rate
(Bloomberg) -- Uber Technologies obtained approval from enough lenders to lower the rate on its $1.13 billion term loan by half a point, according to people with knowledge of the matter.
Uber’s loan due 2023 will now pay 350 basis points more than Libor, said the people, who asked not to be identified because the information isn’t public. The ride-hailing company was seeking to reduce the margin to a range of 350 basis points to 375 basis points from 400 basis points, which is the same rate on a $1.5 billion loan due 2025 that Uber self-syndicated earlier this year.
When Uber was raising that loan in March, it was met with so much investor enthusiasm that it boosted the loan from an initial $1.25 billion and lowered pricing to 400 basis points more than Libor from a proposed margin of 425 basis points to 450 basis points.
That left Uber paying the same interest rate on two loans with different maturities, which is atypical. The repricing of the 2016 loan removes that spread difference.
A representative for Uber didn’t immediately respond to a request for comment.
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