Cash-burning Uber bypasses banks in pitch for a $1.25bn loan
New York — Inside New York’s St Regis Hotel on Friday, debt investors will be given what’s becoming a familiar pitch: a high-flying tech company with a charismatic leader but no real cash flow will ask them to lend it money. This time it’s Uber Technologies, the ride-hailing company that has disrupted the taxi business around the globe. The company is seeking a $1.25bn loan, according to people familiar with the matter. Its new CEO, Dara Khosrowshahi, is expected to be there among senior management telling investors why this is a good deal. And given Uber’s cash burn and annual loss, investors will probably be asked to assess the company by other metrics. One might be its blended valuation of $54bn by a SoftBank Group.-led investor group. That made it the biggest venture-backed technology enterprise without a stock listing. Management may also tout the $4.5bn of cash the company held on its balance sheet as of December 2017, according to documents seen by Bloomberg. It would not be ...
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