Uber Technologies (UBER.US) has successfully priced a private issuance of exchangeable senior notes with a principal amount of 1 billion dollars, maturing in 2028. In pre-market trading on Wednesday, Aurora's stock price plummeted over 17%.
Zhitong Finance APP reports that Uber Technologies (UBER.US) has completed the pricing of a private issuance of exchangeable senior notes amounting to 1 billion dollars, maturing in 2028, with the right to choose to exchange the notes for cash, or under specific stock delivery conditions, exchange for units of the symbol asset, or a combination of cash and symbol asset units. In the initial phase, each symbol asset unit consists of one share of Aurora Innovation (AUR.US) Class A common stock (par value 0.00001 dollars per share).
The initial conversion ratio is 117.6471 units of the symbol for every 1,000 dollars principal of the notes, which implies an initial conversion price for Aurora common stock of approximately 8.50 dollars per share.
These notes do not pay conventional interest and the principal will not appreciate. Unless exchanged, redeemed, or repurchased early, the notes will mature on May 15, 2028.
In December 2020, Aurora acquired Uber's self-driving division - the Advanced Technologies Group. After the transaction was completed, Uber's CEO Dara Khosrowshahi joined the Board of Directors of Aurora, while Uber invested 0.4 billion dollars in the company, acquiring a 26% stake.
In addition, Uber granted the initial purchasers of the notes an option to purchase up to an additional 0.15 billion dollars of the notes.
If customary closing conditions are met, the offering of the notes is expected to close on May 20, 2025.
The offering is expected to raise approximately 0.9789 billion dollars, and if the initial purchasers fully exercise their option to purchase additional notes, the total raised will reach 1.1259 billion dollars. These funds will be used for general corporate purposes, which may include strategic investments.
