Uber Reveals Proposed $1.2B Convertible Senior Notes Offering
Portfolio Pulse from Benzinga Newsdesk
Uber Technologies Inc. has announced a proposed offering of $1.2 billion in convertible senior notes. The company plans to use part of the proceeds to fund capped call transactions, which are typically used to reduce potential dilution to existing shareholders upon conversion of the notes.
November 20, 2023 | 12:01 pm
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NEUTRAL IMPACT
Uber's proposed $1.2 billion convertible senior notes offering may lead to short-term dilution concerns for shareholders, but the use of capped call transactions could mitigate this impact.
Convertible notes can be a double-edged sword; they provide capital but can dilute existing shareholders. Uber's use of capped call transactions suggests they are proactive in managing potential dilution. However, the market's reaction to such offerings can be mixed, depending on investors' views on the company's future growth prospects and current financial health.
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