WeWork seeks credit line of $3B-$4B
WeWork is seeking to secure a credit line of between $3 billion and $4 billion, which could eventually expand to $10 billion, as first reported by the WSJ and confirmed by Axios.
Why it matters: This reflects WeWork's belief that public market investors want to see safe passage to profitability.
- Talks are furthest along with Goldman Sachs and J.P. Morgan, but no final agreement is yet in place. If successful, the deal would effectively cancel WeWork's outstanding bonds (sold last spring). A company spokesperson declined comment.
The bottom line: We often see companies go public in order to reduce their debt, but this may be the first time we've seen a company add debt to go public.