- WeWork’s delayed IPO effort sent its bonds tumbling Tuesday as the company’s streak of bad news continues.
- The shared-workspace company’s $US669 million of bonds expiring in 2025 fell as much as 7 cents Tuesday, hitting 95.8 cents. The drop was the biggest since the notes’ April 2018 issuance.
- WeWork said Monday it now expects to go public before the end of the year.
- Visit the Markets Insider homepage for more stories.
WeWork’s delayed IPO effort sent its bonds plummeting the most on record Tuesday as the company’s streak of bad news continues.
The shared-workspace company’s $US669 million of 2025 bonds fell as much as 7 cents on the dollar to 95.8 cents Tuesday, according Bloomberg data. The drop was the biggest since the notes’ April 2018 issuance.
Investors fear the company’s postponed offering will endanger its ability to pay back its debt. The company needs to carry out an IPO before year’s end if it wants to receive a $US6 billion credit facility contingent on a successful IPO,Bloomberg reported.
The IPO was set to be the second-biggest of 2019 after Uber’s $US8.1 billion listing in May. WeWork was originally valued at $US47 billion following a private fundraising round in January, but trimmed its public valuation to between $US10 billion and $US12 billion, according to Reuters.
The lowered target arrived after experts questioned the company’s profitability, market size, and position in the tech community.
WeWork was scheduled to begin its IPO roadshow as soon as this week.
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