WeWork will reportedly raise billions selling debt before its IPO
- WeWork is allegedly preparing to raise between $3 billion and $4 billion dollars in new debt funding before its anticipated initial public offering.
- ” the Wall Street Journal first reported the news on Sunday, citing sources familiar with the issue that said the debt pile could grew to as much as $10 billion over the next few years.
- WeWork filed confidentially for an IPO with the Securities and Exchange Commission in December 2018.
- WeWork failed to comment on the accounts.
WeWork — the supplier of co-working spaces — could make a halt in the debt market on its way into a inital public offering.
According to a new report by the Wall Street Journal, WeWork wants to raise between $3 billion and $4 billion in debt before its goes public sometime in 2019 or 2020.
The debt facility could swell to as much as $10 billion over the next few years and earn more money than WeWork’s anticipated IPO,” according to the report. The Business confidentially filed for an IPO with Securities and Exchange Commission in December 2018.
The provider’s most important business is managing and operating shared office spaces for startups and huge businesses. The majority of its properties are possessed by other companies and owned by WeWork.
Earlier this year, the WeWork also received $2 billion in funding in a worth of $47 billion from the Softbank Group, a Japanese conglomerate that invests massive sums into startups throughout the world through its own $100 billion Vision Fund. WeWork has increased a total amount of $12.8 billion since its founding in 2010, according to data from Crunchbase.
WeWork belongs into the positions of the heavily funded, money-losing startups like Uber and Lyft, which have found themselves doubted by several traders above their weak market operation after moving people.
The co-working firm lost $1.9 billion 2018 alone, and the money out of the debt facility could be employed to revive confidence to investors before the provider’s proposed IPO, according to the report. Goldman Sachs and JPMorgan Chase are anticipated to structure the deal.
Adam Neumann, WeWork’s chief executive officer, also had conversations with Jamie Dimon, the CEO of JPMorgan, and David Solomon, also the CEO of Goldman Sachs, regarding the bargain, according the report.
WeWork declined to comment for this story.
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