WeWork, the beleaguered co-working and commercial real estate subleasing company, has reportedly secured $1.75 billion in additional debt financing as it plots a path forward following its failed attempt at going public, the departure of its eccentric and controversial co-founder Adam Neumann, layoffs of thousands of employees, and an all-but-total takeover of the business by its largest financier, SoftBank and its Vision Fund.
This is all to say that 2019 has been a tumultuous year for the company.
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Reuters reported Tuesday that the new $1.75 billion comes in the form of a credit line extended by Goldman Sachs. A statement from WeWork said that “the facility is in the process of syndication and is expected to be available in January.”
The new debt facility replaces existing lines of credit totaling approximately $1.1 billion, Bloomberg reported. It’s also part of SoftBank Group Corp.’s $9.5 billion capital commitment to WeWork, made in October as the company failed to make its public debut following investor scrutiny of its disclosed financials as well as numerous financial conflicts of interests involving now-former CEO Neumann.
The company has raised over $8 billion in outside equity funding, plus billions more in debt over its existence. The company was once valued at $47 billion. WeWork was valued at roughly $8 billion when SoftBank Group took control of at least 70 percent of the company’s equity in October.
Illustration: Dom Guzman