WeWork is reportedly rushing to get a new debt financing deal and it could run out of cash next month

markets.businessinsider.com | 10/11/2019 | Staff
anikianiki (Posted by) Level 3
WeWork has a huge pile of debt and now the firm's failed IPO left has left it running out of cash much sooner than expected, the Financial Times said.

Two sources told the Financial Times that the firm's bankers are rushing to complete a new debt financing deal as soon as next week, to give WeWork the time to restructure.

JPMorgan - Chase - Bank - Firm - IPO

JPMorgan Chase, the bank that advised on the firm's IPO, is leading the refinancing negotiations.

Last week, Fitch Ratings downgraded WeWork's debt even further into junk, with a scathing report that said the company has a "precarious liquidity position."

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Read more of Business Insider's WeWork coverage here.

WeWork - Cash - Fast

WeWork is running out of cash. Fast.

Two sources told the Financial Times that the real-estate firm's bankers are rushing to complete a new debt refinancing package as soon as next week, as the firm could be out of cash by the end of next month.

JPMorgan - Negotiations - Bank - WeWork - IPO

Now, JPMorgan is reportedly leading the negotiations on refinancing — the bank also advised WeWork on its failed IPO. The bank is considering a sizeable contribution to the package, according to the Financial Times, which cited several people familiar with the matter.

The paper added that the debt will come at a much higher cost than previous loans, given WeWork's recent financial history.

People - Situation - FT - JPMorgan

People familiar with the situation also told the FT that JPMorgan is trying to get...
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