Still riding high from selling a $3.5 billion stake to Saudi Arabia’s public investment fund, Uber is on the hunt for more cash.
The company is looking to infuse its reserves with as much as $2 billion through a leveraged loan, according to the Wall Street Journal. The company has tapped Barclays and Morgan Stanley to sell the loan.
Leveraged loans are high-risk, high-yield loans—like junk bonds—that get sold to an array of different private investors. The reason they tend to be high risk is because the company asking for the loan is already in debt (for more info on leveraged loans, check out this writeup on Quartz).
Banks are interested in facilitating the loan to Uber, in hopes they might play a part in its eventual public offering. For Uber, a leveraged loan is attractive because it can avoid further diluting stock shares.RR