Uber is turning to a new source of cash in exchange for something other than equity.
The now six-year-old ride-hail company, valued at $68 billion after a recent $3.5 billion infusion of funding from the Saudi Arabian sovereign wealth fund, is in the middle of raising between $1 billion and $2 billion in leveraged loans, Recode has confirmed.
The company, which is pouring much of its resources into battling homegrown ride-hail competitors in places like China and India, isn't so much strapped for cash as it's strapped for equity. Turning to the leveraged loan market and issuing debt instead of shares ensures the company can raise more money without diluting the holdings of existing investors.
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