Uber Seeks up to $2 Billion Dollars in High-Risk Loans
Toggle Dark Mode
Today it was reported that Uber is looking for up to $2 billion in loans from several institutional investors such as Barclays, Goldman Sachs Group, and Morgan Stanley. They are seeking money from the leveraged-loan market, which is an untraditional place for the company to seek loans.
It has been rumored that Uber will issue plan on issuing debt in the coming weeks, but there is no confirmation on how much.
Uber is the world’s wealthiest startup, last December being valued at $62.5 billion after a recent $3.5 billion infusion of funding from the Saudi Arabian sovereign fund. However, the fact that they are looking for cash in the leveraged-loan market could mean rough times for the company.
Last week the CEO Travis Kalanick told an audience in Berlin that although they are popular in developed countries, but they are rather unprofitable in developing countries. Kalanick also reported that an IPO won’t be happening anytime soon, more specifically said “between one and ten years.” Leveraged loans are often given to companies who have a considerable amount of debt since they have a higher risk of default.
