Uber Technologies Inc. borrowed $500 million to refinance debt, joining a barrage of high-yield companies that are capitalizing on cheap rates to lower their interest expense.

The ride-sharing service sold bonds due in 2028 at an interest rate of 6.25%, its lowest ever, according to data compiled by Bloomberg. The proceeds, along with cash on hand, will be used to redeem an equal amount of 7.5% notes due in 2023, according to a statement Monday.

What Bloomberg Intelligence Is Saying

“Though cash burn remains high, Uber’s financial flexibility is supported by access to reasonably low-cost capital, in our view, letting the company extend its maturity profile while simultaneously lowering costs.”

–Robert Schiffman and Conor Cuddy, credit analysts

–Click here to read the report

Uber is taking advantage of some of the lowest-ever yields to refinance outstanding obligations. That’s made up the bulk of this year’s borrowing activity, as junk-bond issuance has vaulted over $300 billion for the first time since 2013 and the market is within striking distance of a new annual record.

That could happen as soon as this month, if Monday’s roster of deals is any indication. At least 10 new junk-bond sales were in syndication, and most of them are meant to refinance debt.

Morgan Stanley, Bank of America Corp., Barclays Plc, Citigroup Inc. and Goldman Sachs Group Inc. were lead managers on the Uber bond sale, according to a person with knowledge of the matter, who asked not to be identified as the details are private.

*by Molly Smith via Bloomberg*