The provider of shared workspaces WeWork would rather opt for a billion-dollar credit than a rescue plan where SoftBank takes over control. The Bloomberg news agency reports this based on insiders.
Now that the IPO of parent company The We Company is canceled, the company urgently needs other forms of financing. The loss-making company might otherwise be out of money next month.
The borrowing costs are said to increase rapidly with the new financing plans, which must yield a total of 5 billion dollars. This includes, for example, 2 billion in unsecured loans with a 15 percent coupon, almost double the interest that WeWork paid last year on its first bond issue.
Until a few months ago, WeWork was regarded as a promising innovator in the office market. In the run-up to the IPO of the company, more and more doubts arose about the management under CEO Adam Neumann.
WeWork itself announced that it would step out of a prestigious project in Seattle. The company would develop apartments and office space in this city for a 36-storey flat, but will not do so because of the tight finances.
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