FW: Uber Freight’s $851m payout to Greenbriar highlights creative deal structures

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FREIGHTWAVES reports:

Managed transportation and technology provider Uber Freight’s (NYSE:UBER) conclusion in October of an $851 million payout to Greenbriar Equity Group effectively ended the structured investment relationship established in October 2020.

Greenbriar led a $500 million investment in Uber Freight, valuing the company at $3.3 billion post-money and positioning Uber Freight as a player with ambitious growth plans. However, the payout signifies a shift, highlighting both Uber Freight’s evolving valuation and the foresight of Greenbriar’s strategic financial protections.

The investment

When Greenbriar invested in Uber Freight, it structured the deal with substantial protections and a preferred return framework. Greenbriar’s Series A preferred stock guaranteed a 1.5x liquidation preference on its initial investment, plus a continuously compounding 6% annual dividend. This structure ensured a minimum 20% annual return for Greenbriar while giving it the option to call for either an initial public offering or payout if Uber Freight didn’t achieve certain growth milestones by October 2023…

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