1. How would Uber’s balance sheet be impacted by its $2 billion bond issuance?

2. Uber issued $2 billion in bonds
October 2018
$500 million of five-year bonds with a 7.5% coupon
$1.5 billion of eight-year bonds with an 8% coupon
Uber issued $2 billion in bonds

3. Question 1
How would Uber’s balance sheet be impacted by the $2 billion bond issuance on the date of issuance?

4. Question 2
How much in cash interest would Uber pay on this bond issuance in 2019?

5. Question 3
If Uber is not profitable, why do you think creditors would be willing to purchase Uber’s bonds?

6. Question Recap
How would Uber’s balance sheet be impacted by the $2 billion bond issuance on the date of issuance?
How much in cash interest would Uber pay on this bond issuance in 2019?
If Uber is not profitable, why do you think creditors would be willing to purchase Uber’s bonds?

7. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Dr. Wendy Tietz at