Uber Technologies Announces Credit Agreements to Finance Delivery Hero Offer

What Happened

• Uber Technologies, Inc. filed an 8-K on August 7, 2026, disclosing multiple financing agreements tied to its previously announced Business Combination Agreement to pursue a voluntary public takeover offer for Delivery Hero SE.
• On August 6, 2026, Uber entered a Term Loan Credit Agreement (administered by Morgan Stanley Senior Funding, Inc.) that reduces commitments under the existing bridge facility by €4,000,000,000 and provides unsecured term loans in two tranches (Tranche A: matures 18 months after closing; Tranche B: matures 3 years after closing). Proceeds will finance the Offer, related transactions, refinance certain Delivery Hero debt, and pay transaction costs.
• Also on August 6, 2026, Uber amended its Bridge Credit Agreement (raising a cross-payment default/acceleration threshold from $300M to $500M and removing certain reps and warranties) and executed a new unsecured Revolving Credit Agreement with $7.7 billion of commitments (maturing August 6, 2031) with Bank of America as administrative agent.

Key Details

• Term Loan reduced bridge commitments by €4,000,000,000 and carries interest at EURIBOR plus a margin that varies with Uber’s senior unsecured debt ratings; a commitment fee begins Nov 13, 2026.
• Revolving Credit Agreement provides $7.7 billion of unsecured revolving capacity; approximately $324 million of letters of credit were transitioned at closing, but no borrowings were outstanding.
• Both the Term Loan and Revolving facilities require Uber to maintain a consolidated adjusted EBITDA-to-interest expense ratio of at least 3.00 to 1.00 and include customary covenants and events of default (many tied to $500 million thresholds).
• The Term Loan is unsecured and not guaranteed by subsidiaries; certain default events can accelerate repayment and terminate commitments.

Why It Matters

• These financing steps concretely position Uber to fund its proposed takeover offer for Delivery Hero without subsidiary guarantees, increasing liquidity flexibility through a large $7.7B revolver and a multi-tranche term loan.
• Credit terms tie pricing and fees to Uber’s credit ratings and include a significant leverage/coverage covenant (EBITDA-to-interest ≥ 3.0x), which investors should monitor because rating changes or covenant breaches could affect borrowing costs or trigger defaults.
• The amendments and new agreements change the company’s near-term financing profile (maturities, thresholds, and default mechanics) and reduce reliance on the prior bridge facility, which is material context for shareholders evaluating the Delivery Hero transaction.