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Uber raises $1.5 billion in leveraged loan deal despite losing money (MarketWatch)

March 23, 2018

MarketWatch reported Uber Technologies Inc. raised $1.5 billion from its second-ever high-yield loan issuance, highlighting the strength of the leveraged loan market. Uber continues to lose money, a characteristic that would typically reduce the appeal of its debt to creditors, who generally care more about companies’ near-term abilities to generate cash and meet their loan obligations than their growth prospects. Not including certain items like interest, taxes, depreciation and amortization, Uber’s loss was $775 million in the fourth quarter, compared with $1.02 billion in last year’s third quarter.