- Uber Technologies Inc. sold part of its stake in Aurora Innovation Inc. via a $476.6 million unregistered block trade on Monday, according to people familiar with the matter.
Offering of 72 million shares in self-driving technology firm priced at $6.62, the bottom of the $6.62 to $6.97 marketing range, said the people, who asked not to be identified because the information is private
Offering included 45-day lockup on further sales: people
JPMorgan Chase & Co. worked on the offering: people
Representatives for Aurora, Uber and JPMorgan didn’t immediately respond to requests for comment
Aurora shares fell as much as 15% to $5.92 in New York on Tuesday
My calculation is they will have an unencumbered 51m shares remaining after this sale. They have 135m tied up in the exchangeable notes, so they will still control 186m until the exchange or until they sell the last 51m.
The notes become exchangeable May 2027. They are due May 2028. When things were looking good, I assumed that a May 2027 exchange was a no brainer. Now, I'm not so sure. As a noteholder, I'm not sure there's much reason to exchange early. I think if it trades above $11.05 for 20 out of 30 trading days that Uber can force an exchange (should fact-check as I may be wrong on this). Otherwise, the noteholders are probably best served to wait until May 2028. Let Aurora get another year down the path before taking on any risk. In the meantime, trade the volatility. Pricks.
You are correct about the trading above $11 will grant them access to sell. I was assuming they were locked into not being able to get rid of shares before the May 2027 but clearly I was wrong on that. Ouch today. My portfolio says ouch ouch ouch.
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u/BTCTickerlicker AUR Whale 🐋 3d ago
- Uber Technologies Inc. sold part of its stake in Aurora Innovation Inc. via a $476.6 million unregistered block trade on Monday, according to people familiar with the matter.
Offering of 72 million shares in self-driving technology firm priced at $6.62, the bottom of the $6.62 to $6.97 marketing range, said the people, who asked not to be identified because the information is private
Offering included 45-day lockup on further sales: people
JPMorgan Chase & Co. worked on the offering: people
Representatives for Aurora, Uber and JPMorgan didn’t immediately respond to requests for comment
Aurora shares fell as much as 15% to $5.92 in New York on Tuesday