What's Going On With Uber Stock Today?

Uber Technologies Inc UBER shares are volatile Monday after the company proposed an offering. 

What Happened: Uber announced a proposed offering of $1.2 billion aggregate principal amount of convertible senior notes due 2028. The notes are only being offered to qualified institutional buyers. Uber also intends to grant the purchases the options to buy an additional $180 million worth of the notes.

Uber intends to use a portion of the net proceeds to fund the cost of entering into capped call transactions. The company intends to use the remainder of the net proceeds to repay, redeem or repurchase outstanding indebtedness.

Uber reported third-quarter financial results earlier this month. The company said at the time that it had $5.2 billion in unrestricted cash, equivalents and short-term investments. 

See Also: Tesla Starts Bringing Cybertruck To Showrooms Hinting At A Wider Strategy

UBER Price Action: Uber shares initially traded lower following the offering announcement, but have since recovered. The stock was up 0.29% at $54.69 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Uber.