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Uber is raising “up to $2 billion” in the form of a leveraged loan, according to a new report from The Wall Street Journal’s Marueen Farrell, Matt Wirz, and Douglas MacMillan.
The ride-hailing company is tapping Barclay’s PLC and Morgan Stanley to sell the leveraged loan, according to the Journal.
In the coming weeks, Uber is also said to be planning to tap institutional investors for a loan as well.
Most new leveraged loans have an average yield between 3.9% and 5.5%, but Uber is hoping its loan will be priced with a yield between 4% and 4.5%, a low rate for a first-time issuer, the Journal reported.
The leveraged loan market is often used by private companies – those with “junk” ratings or lower – or the riskiest corporate borrowers. This new loan would bring Uber’s total debt and equity up to about $15 billion, according to the Wall Street Journal.
The ride-hailing company is currently valued at $62.5 billion.