Aurora Innovation slides on Uber $1 bln exchangeable notes sale

Aurora Innovation

14/05/2025 11:55

** Shares of self-driving technology maker Aurora Innovation AUR.O slide 17.5% to $6.04 premarket after stockholder Uber Technologies UBER.N secures capital raise

** San Francisco, California-based ride-hailing firm late Tues announced pricing $1 bln 0% 3-yr exchangeable notes offering

** The notes will be exchangeable into cash, or, per certain share delivery conditions, units of reference property, or combination of cash and units of reference property, at Uber’s election

** Initially, each unit of reference property will comprise one AUR share, Uber said. The initial exchange price of $8.50 is ~16% above AUR's $7.32 last sale on Tues

    ** Uber, which has ~$192 bln market cap, plans to use net proceeds for general purposes, including potential strategic investments

** Shares of UBER on Tues finished up ~4% at record high close of $91.72, extending YTD gain to 52%. Its stock is off 0.5% before the bell

** In Jan, Aurora inked long-term deal with Nvidia NVDA.O and Germany's Continental CONG.DE to deploy driverless trucks

    ** Through Tues, AUR's shares gained 16% YTD. Shares closed at $3.14 a year ago

    ** Pittsburgh, Pennsylvania-headquartered Aurora has ~1.8 bln shares outstanding for $13 bln market cap. Uber is its largest shareholder with ~326 mln shares, according to LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))