WeWork is in talks with investors to restructure its outstanding debt of more than $3bn and raise more cash, according to the New York Times.
The paper reported that WeWork’s largest shareholder and largest investor SoftBank, was playing a ‘key role’ in the negotiations, but was not expected to put any more money into the flexible workspace provider.
The New York Times said a restructuring deal was ‘close’ to being agreed, which would give the company the cash injection it needs to keep trading for at least a few years. On the back of the news, WeWork’s shares rose sharply in late trading on Wall Street last night
In January 2023, WeWork issued $250m of senior secured notes due in 2025 to an affiliate of Softbank pursuant to its existing senior secured notes commitment. A month later the company extended the maturity of the junior tranche of its letter of credit facility from November 2023 to March 2025 and increased the facility from $350m to $470m.
Reporting its Q4 2022 results in February, WeWork said it had liquidity of approximately $1.3bn, which included available cash and cash equivalents, unissued senior secured notes, and secured debt covenant capacity.
