Uber Technologies has reportedly raised $1.15bn in the form of a leveraged loan in order to expand its operations globally.
The ride-hailing firm will pay a yield of nearly 5% on the loan, which has been arranged by Morgan Stanley, Barclays, Citigroup and Goldman Sachs Group.
The loan takes the total amount raised by Uber in debt and equity to more than $15bn.
Uber has recently raised $3.5bn from Saudi Arabia’s sovereign wealth fund, Public Investment Fund and received approximately $2bn in funding from several Chinese investors.
The latest leveraged loan follows reports last month that Uber was planning to raise as much as $2bn at a 4% to 4.5% yield. The company had appointed banks on the proposed deal.
The deal will make sure that none of Uber’s current shareholders dilute their stock holdings.
The company’s existing investors include venture capital companies such as Benchmark and mutual funds like Fidelity Investments.
Uber is depending mostly on raising funds through equity dilution. The company raised more than $12.51bn in equity financing since 2009 and only about $2bn in debt financing.
In order to avoid further dilution, the company has decided to not to sell more of its stocks.
Uber is increasing its cash balance to invest heavily in Chinese, Indian and other global markets.
The company’s China rival, Didi Chuxing had recently raised $7.3bn in fresh capital, which included a $1bn investment from Apple.
