WeWork bond prices at record low on possible debt-heavy financing deal
NEW YORK: The price of WeWork’s U.S. junk bond fell to an all-time low on Tuesday, last trading at 78 cents on the dollar, as the company weighed financing options including a package that may include at least US$2 billion of unsecured notes with a 15per cent coupon.
The office sharing company’s May 2025 7.875per cent junk bond worth US$702 million was last down 12.5per cent, down 25.7per cent from a record high in mid-August.
WeWork parent We Companies is leaning toward a near US$5 billion financing package led by JPMorgan Chase & Co , instead of selling a controlling stake to Japan’s SoftBank Group Corp , Bloomberg reported late on Monday. That debt package may include the additional US$2 billion in bonds, Bloomberg said.
(Reporting by Kate Duguid)