WeWork in Deal for Capital Injection, Debt Conversion

By Chris Wack

WeWork Inc. said Friday that it has entered into a series of agreements with an ad hoc group representing more than 60% of its public bonds, a third-party investor, and SoftBank's Vision Fund II, which will provide it with an improved and sustainable balance sheet.

The company said the ad hoc group includes funds and accounts managed by King Street Capital Management L.P., funds and accounts managed by BlackRock, funds and accounts managed by Brigade Capital Management, and other leading financial institutions.

Collectively, the transactions will reduce WeWork's net debt by $1.5 billion at closing, extend a significant maturity wall from 2025 to 2027, and result in new funding and new and rolled capital commitments of more than $1 billion, once completed.

The transactions will deliver $540 million in new funding, $175 million in new capital commitments, and $300 million in rolled capital commitments, totaling more than $1 billion, as well as net incremental liquidity of more than $500 million after cancellation of SoftBank's prior $500 million senior secured note purchase agreement.

WeWork shares are up 2% at $1 in early Friday trade, and are down 84% in the past 12 months.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

March 17, 2023 10:03 ET (14:03 GMT)

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