WeWork’s IPO Is in Flux and Its Bondholders Are Getting Nervous
- Debt falls 3 cents on the dollar as company weighs options
- WeWork joins Netflix, Uber in selling bonds despite cash-burn
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WeWork’s suddenly troubled IPO plans have begun to unnerve its creditors, who worry about where the cash-burning company will turn to land its next round of financing -- or if it needs to radically rethink its business strategy.
The company’s planned initial public offering looked like a lifeline for a company that lost $1.6 billion last year. Not only was it supposed to raise about $3.5 billion from equity investors but it would free up an additional $6 billion in debt financing that was contingent on a successful IPO.