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we work Inc said on Friday it had struck deals to cut debt by about $1.5 billion and extend the dates of some maturities to preserve cash, as the flexible-working space provider felt the heat of massive layoffs at its business. it occurs.
The company, which offers workstations, private offices and customized floors, had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but is now gearing up for a potential fallout from a possible economic downturn.
WeWork said it would also invest approximately $540 million in the company in new funding.
Last month, the company forecast weak current-quarter revenue, after announcing plans to cut 300 jobs and exit 40 underperforming US locations with the aim of curbing its real-estate footprint.
Under the deals announced on Friday, $1.0 billion of unsecured notes from major investor SoftBank Group Corp will be converted into equity. Prior to the restructuring announcement, the Japanese company owned about 46% of WeWork. Refinitiv Figures.
WeWork said that approximately $1.9 billion of pro-forma debt will now mature in 2027, adding that its net debt will be less than $2.0 billion after the deal closes.
WeWork said the agreements also included an ad hoc group representing more than 60% of the company’s public bonds and a third-party investor. group is included King Street Capital Management LP and black Rock ink
WeWork, which went public in 2021 after two years of struggle, is yet to report quarterly profit. But the company said on Friday it expected cost-cutting to drive its main profits this year.
PJT Partners LP advised WeWork on the debt restructuring, while Houlihan Locke advised SoftBank.
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