Cabvision TaxiPoint GIF.gif

Uber’s search for loan increases to over £1bn after autonomous car fatality

20 Mar 2018

 

 

Ride-hailing firm Uber are seeking more than originally first thought via the leveraged loan market. The decision comes just one day after the minicab chose to suspend further autonomous car rides following the fatality of a pedestrian.  

 

Following a record year of losses private hire firm Uber had confirmed that they were seeking a £900m leveraged loan. However, this is now likely to be closer to £1.07bn. 

 

Despite the death of a pedestrian caused by a driverless Uber vehicle interest from

loan investors is expected to remain high due to the lure of a high yeald return.  


The much maligned car-hailing service saw annual losses jump from £2bn to £3.2bn following several high profile legal cases and a loss in its market value.

According to Bloomberg sources Uber are trying to push for a loan by contacting leverage investors directly. A leveraged loan is usually extended to companies that already have large amounts of debt. Lenders consider leveraged loans to carry a higher risk of default, and as a result, a leveraged loan is likely to be more costly to Uber.

However, by selecting to increase their debt rather than equity, this means existing Uber shareholders won’t see their holdings diluted.

This isn’t the first time Uber have taken out a sizeable loan. In 2016 the firm raised around £830m from leveraged loan investors to aid its global growth.

 

Please reload

  • Facebook
  • Twitter
  • YouTube Social  Icon
  • Instagram Social Icon
  • Facebook TaxiPoint
  • Twitter TaxiPoint
  • YouTube TaxiPoint
  • Instagram

Featured Stories

Please reload

ltda banner.JPG
black.gif
TaxiPoint--300x200px-MLP-GIF.gif
advert gif.GIF
advert gif.GIF
advert gif.GIF
RSS Feed

The views expressed in this publication are not necessarily those of the publishers.

 

All written and image rights are reserved by authors displayed.

Reproduction in whole or in part without prior permission from the publisher is strictly prohibited.

All written content Copyright of TaxiPoint 2019. Creative Common image licenses displayed where applicable.