mobile-bannertablet-bannerdesktop-banner
459615282
Photo courtesy: Andrew Harrer — Bloomberg via Getty Images

Uber ties Goldman fundraise to eventual IPO

Dec 04, 2014

Earlier this week we reported that Uber had hired Goldman Sachs to raise money from the bank's high-net-worth clients, via a private placement of convertible notes. This was separate from Uber's institutional fundraise, which today was revealed to be for upwards of $1.8 billion at a $40 billion pre-money valuation (with $1.2 billion already in the bank).

Now we have a bit more information on the Goldman offering, which could end up raising around $1 billion. Sources familiar with the situation say that the securities will not be priced to the $40 billion valuation, but rather at a 30% discount to Uber's eventual IPO price.

That means Uber would need to be worth around $52 billion at IPO in order for the Goldman investors to receive the same upside as the new institutional buyers. Uber also would need to go public, which likely is more than a year off. No word on what happens to the convertible notes in the highly unlikely case Uber is sold, although my assumption is that the conversion calculation would be similar.

An Uber spokeswoman declined to comment.

Sign up for our daily email newsletter on deals: GetTermSheet

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions