Grab Holdings launches tender offer for up to $750 million of term B

By Sara Rosenberg

New York, Nov. 16 – Grab Holdings Inc. launched a Dutch auction tender offer for up to $750 million of its $1.97 billion term loan B at a price in the range of 95 to par, according to a market source.

The term loan was issued in January 2021 with a five-year tenor.

JPMorgan Chase Bank is the lead on the deal.

The tender offer, which expires at noon ET on Friday, will be funded with cash on hand.

“Consistent with our disciplined capital allocation approach to preserve cash and chart a clear path to profitability while maintaining a strong balance sheet, Grab’s board of directors has approved the repurchase of up to $750 million of our outstanding term loan B,” the company said in a news release.

“The repurchase is expected to create significant interest expense savings. With $5.3 billion of net cash liquidity as of Sept. 30, 2022, we expect to have ample net cash buffer upon reaching our expected group adjusted EBITDA breakeven in the second half of 2024,” the news release added.

Grab is a Singapore-based ride hailing company and a provider of food delivery, digital payments and other financial services via a mobile app.

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