(Bloomberg) -- Uber Technologies Inc. brought a $900 million bond sale, just a day after a report said it has made an offer to acquire food delivery company Grubhub Inc.
That’s up from a planned $750 million, which may be used for acquisitions among other general corporate purposes, according to a statement Wednesday. The five-year notes, which can’t be bought back for two years, will yield 7.5%, according to people with knowledge of the matter, who asked not to be named discussing a private transaction.
Read more: Uber Fueling Up With Liquidity for Grubhub M&A: Credit React
A deal with Grubhub would combine two of the largest food-delivery apps in the U.S. as the coronavirus drives a surge in demand, Bloomberg reported Tuesday. While neither company confirmed, they both acknowledged they’re always looking for opportunities to provide value to their businesses.
Uber said last week that it will close its food delivery service, Uber Eats, in markets where it isn’t popular. In the first quarter, bookings from ride-hailing customers declined for the first time ever due to travel shutdowns, but Uber said that part of its business is now beginning to recover.
S&P Global Ratings grades Uber’s new unsecured notes as CCC+, or seven levels below investment grade. Moody’s Investors Service rates them B3, one step higher than S&P.
Morgan Stanley, Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., Barclays Plc and HSBC Holdings Plc are managing the bond sale, according to the people.
(Updates with size in first paragraph, yield in second)
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