WeWork bond prices at record low on possible debt-heavy financing deal

Reuters ^ | October 15, 2019 | Staff

[C19fan]

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 $2 billion of unsecured notes with a 15% coupon.

The office sharing company’s May 2025 7.875% junk bond worth $702 million was last down 12.5%, down 25.7% from a record high in mid-August.

[C19fan]

Supposedly WeWork will run out of cash perhaps before the new year. The lead financier JP Morgan is also the personal banker of ousted CEO Neumann. Neumann has borrowed hundreds of millions from Morgan and other banks using his stake in WeWorks as collateral.

[BBQToadRibs]

It seemed a pretty dodgy proposition from the get go. Not terribly surprised it didn’t take off. Going to be some pretty hefty losses on this one.

[katana]

It didn’t work.