WeWork will reportedly raise billions selling debt before its IPO

  • WeWork is reportedly preparing to raise between $US3 billion and $US4 billion in new debt financing before its expected initial public offering.
  • The Wall Street Journal first reported the news on Sunday, citing sources familiar with the matter that said the debt pile could grow to as much as $US10 billion over the next few years.
  • WeWork filed confidentially for an IPO with the Securities and Exchange Commission in December 2018.
  • WeWork declined to comment on the report.
  • Visit the Markets Insider homepage for more stories.

WeWork – the provider of co-working spaces – might make a stop in the debt market on its way to an inital public offering.

According to a new report from the Wall Street Journal, WeWork is looking to raise between $US3 billion and $US4 billion in debt before its goes public sometime in 2019 or 2020.

The debt facility could swell to as much as $US10 billion over the next few years and bring in more money than WeWork’s expected IPO, according to the report. The company confidentially filed for an IPO with Securities and Exchange Commission in December 2018.

The company’s main business is managing and operating shared office spaces for startups and large companies. Most of its properties are owned by other firms and leased by WeWork.

Earlier this year, WeWork also received $US2 billion in funding at a value of $US47 billion from the Softbank Group, a Japanese conglomerate that invests massive sums into startups across the world through its $US100 billion Vision Fund. WeWork has raised a total of $US12.8 billion since its founding in 2010, according to data from Crunchbase.



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WeWork belongs to the ranks of the heavily funded, money-losing startups like Uber and Lyft, which have found themselves doubted by some investors over their weak market performance after going public.

The co-working company lost $US1.9 billion in 2018 alone, and the money from this debt facility could be used to restore confidence to investors ahead of the company’s planned IPO, according to the report. Goldman Sachs and JPMorgan Chase are expected to structure the deal.

Adam Neumann, WeWork’s chief executive officer, had conversations with Jamie Dimon, the CEO of JPMorgan, and David Solomon, the CEO of Goldman Sachs, regarding the deal, according the report.

WeWork declined to comment for this story.


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