An Uber Investment

Mobile car booking company Uber just raised $1.6 billion in convertible debt from Goldman Sach's clients. The company is still in talks to raise $600 million from hedge funds and just raised $1.2 billion in financing in December. An interesting note is the structure of the convertible bond. The bond has a six year maturity, and allows bondholders to convert the bond into equity at a 20 to 30 percent discount to Uber's valuation at the time of the company's IPO. However, if Uber does not go public in the next four years, the coupon rate increases.