Uber is looking for a $1.25 billion USD leveraged loan in the US loan market, says a new report.
According to Bloomberg, the ridesharing company has started talks with loan investors to directly borrow the money instead of going through traditional banks.
Companies typically borrow money in the leveraged loan market when they already have considerable debt, though this also means that the borrowers are subject to a higher risk of default.
Uber has tapped the loan market before. Back in 2016 the company borrowed $1.15 billion from a deal arranged by Morgan Stanley.
This news follows Uber sharing that it had made $7.5 billion in sales in 2017, though the company posted a loss amounting to $4.5 billion.
Portions of Uber’s revenue loss stem from lawsuits against self-driving car technology company Waymo.
According to Bloomberg’s data, Uber already has a $2.2 billion line of credit.