Aurora Innovation Shares Fall As Uber Announces $1B Note Offering: What's Going On?

Shares of Aurora Innovation Inc AUR are trading lower by 8.81% to $6.67 during Wednesday’s session after Uber Technologies Inc UBER announced plans to monetize part of its stake in the autonomous vehicle company through a $1 billion convertible note offering.

What To Know: According to an SEC filing, Uber will privately place senior notes due 2028 with institutional investors. The zero-coupon notes will be exchangeable for Aurora common stock at an initial exchange price of approximately $8.50 per share. The offering includes an option for an additional $150 million in notes and is expected to close on May 20.

Uber acquired its Aurora stake in 2020 when it sold its self-driving unit to the company in an all-equity deal worth $400 million, securing a 26% ownership. CEO Dara Khosrowshahi, who joined Aurora's board as part of the deal, plans to step down by year-end.

The notes will be secured by Uber's Aurora shares through its subsidiary Neben Holdings. Uber expects to use the net proceeds, anticipated at around $979 million, for general corporate purposes, potentially including strategic investments.

Read Also: Zevra Therapeutics Stock Jumps on Strong Q1 Results: What’s Going On?

How To Buy AUR Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Aurora Innovation’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, AUR has a 52-week high of $10.77 and a 52-week low of $2.10.

Photo: courtesy of Aurora Innovation.