Uber term loans better with earnings; Patagonia adjusts issue price; Sabre joins calendar

By Sara Rosenberg

New York, Aug. 2 – Uber Technologies Inc.’s term loans gained some ground in the secondary market on Tuesday after company reported better-than-expected second quarter results.

Meanwhile, on the new deal front, Patagonia Holdco (Lumen Latin America) widened the original issue discount on its term loan B, and Sabre GLBL Inc. emerged with plans to bring a term loan B to market.

Uber heads higher

Uber’s term loans strengthened in trading following the release of second quarter numbers that showed positive cash flow for the first time and revenue higher than analyst estimates, according to a trader.

The 2025 term loan was quoted at 98½ bid, 99¼ offered, up from 98 bid, 99 offered, and the 2027 term loan was quoted at 97 7/8 bid, 98 3/8 offered, up from 97½ bid, 98½ offered, the trader said.

For the quarter, free cash flow was $382 million, up $780 million year-over-year, and revenue was $8.073 billion, up 105% from $3.929 billion in the second quarter of 2021.

Net loss for the quarter was $2.601 billion compared to net income of $1.144 billion in the comparable period last year. The net loss includes a $1.7 billion net headwind relating to equity investments, primarily due to aggregate unrealized losses related to the revaluation of Uber’s Aurora, Grab and Zomato stakes, and $470 million in stock-based compensation expense.

Results also included adjusted EBITDA of $364 million, up $873 million year-over-year, and gross bookings of $29.078 billion, up 33% from $21.9 billion in the second quarter of 2021.

Looking ahead, for the third quarter, the company expects adjusted EBITDA in the range of $440 million to $470 million and gross bookings in the range of $29 billion to $30 billion.

Uber is a San Francisco-based online transportation network company.

Patagonia modified

Moving to the primary market, Patagonia changed the original issue discount on its $800 million seven-year term loan B (B1) to 82 from 90, a market source remarked.

As before, the term loan is priced at SOFR plus 575 basis points with a 0.5% floor and has 101 soft call protection for six months.

Commitments are due at noon ET on Wednesday, the source added.

JPMorgan Chase Bank, Goldman Sachs Bank USA, Citigroup Global Markets Inc., BofA Securities Inc., Natixis, Deutsche Bank Securities Inc. and Bank of Nova Scotia are leading the deal that will be used to help fund the $2.7 billion buyout of Lumen Technologies’ Latin American business by Stonepeak, which was completed on Monday.

Patagonia is a Latin American communications platform with a subsea, terrestrial fiber and data center footprint.

Sabre on deck

Sabre GLBL set a lender call for 11:30 a.m. ET on Wednesday to launch a $400 million term loan B due June 30, 2028 talked at SOFR+10 bps CSA plus 475 bps to 500 bps with a 0.5% floor, an original issue discount of 94 to 95 and 101 hard call protection for one year, a market source said.

Commitments are due at noon ET on Aug. 9, the source added.

BofA Securities Inc. is the left lead on the deal that will be used to prepay a portion of the company’s term loan B due 2024 and pay related fees and expenses.

Sabre is a Southlake, Tex.-based software and technology company for the travel industry.

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