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SoftBank Group in talks for $5-billion rescue financing for WeWork

The funds will come directly from SoftBank, rather than its Vision Fund, according to a person familiar with the matter

Bloomberg 

SoftBank

Group is in discussions to provide with roughly $5 billion of rescue financing in an effort to salvage one of the Japanese conglomerate’s biggest investments.

The funds will come directly from SoftBank, rather than its Vision Fund, according to a person familiar with the matter. SoftBank, which already owns about one-third of WeWork, would not amass a majority of voting rights, though its stake would increase, the person said. Part of the package may include non-voting preferred stock.

News of the financing talks sent WeWork’s bonds to their biggest gain on record Wednesday. The jump of more than 8 cents on the dollar erased a record plunge a day earlier.

WeWork, reeling in the past few weeks since parent We Co scrapped its initial public offering, and in danger of running out of cash as early as next month, has been pursuing a pair of rescue plans to shore up its finances — one from SoftBank, its largest shareholder, and another from that would include a $5 billion debt package.

First Published: Thu, October 17 2019. 01:36 IST
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