Uber Bonds Term Sheet Reveals $470 Million in Operating LossesEric Newcomer and Jing Cao
Uber Technologies Inc. is telling prospective investors that it generates $470 million in operating losses on $415 million in revenue, according to a document provided to prospective investors.
The term sheet viewed by Bloomberg News, which is being used to sell $1 billion to $1.2 billion in convertible bonds, doesn’t make clear the time period for those results. The document also touts 300 percent year-over-year growth.
The figures show the heavy losses that Uber is accruing as it expands its global car-booking operation amid fierce local competition. Uber is already operating in more than 300 cities worldwide and is raising money at a $50 billion valuation, a person familiar with the situation said last month. Uber is spending aggressively especially in China and as it experiments with its carpooling service uberPOOL.
“These are substantially old numbers that do not reflect business activities today,” Uber spokeswoman Nairi Hourdajian said in an e-mail. Hourdajian declined to say why the numbers are being used to promote a current funding round.
The ride-sharing company co-founded by Travis Kalanick remains fiercely secretive about its financial performance, even with prospective investors.
Hillhouse Capital Management is leading the convertible bond deal, a person with knowledge of the matter said June 23. The bonds can be converted to shares at a discount if Uber goes public.
Investors in this round will be able to convert the notes at a compounded 11.5 percent discount if the company sells shares on the public market, the document shows. The bonds mature in 2022, with an 8 percent annual return if held through maturity. Uber aims to complete the deal by Tuesday, according to the document.
The car-booking startup has been on a spree to raise cash. Uber is negotiating a $2 billion credit line from a group of Wall Street banks, a person with knowledge of the situation said last week. Earlier this year, it raised $1.6 billion in convertible debt from Goldman Sachs Group Inc.’s wealth-management clients, which valued the company at $40 billion.
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