WeWork Seeks $6 Billion Financing, Contingent on IPO Success
August 02, 2019 / Gillian Tan
WeWork Cos. is setting up $6 billion in financing to pursue its global ambitions, but there’s an unusual catch: It must first succeed in its initial public offering next month. The company has been meeting with analysts this week, outlining its business and plans for expansion as it prepares for a stock-market debut. Behind the scenes, the firm is seeking to borrow in two ways: a $2 billion letter-of-credit facility and a $4 billion delayed-draw term loan, people with knowledge of the matter said, asking not to be named because terms are private. But in a twist, banks will have to make good on their commitments only if at least $3 billion is raised in the offering, upping the stakes for the IPO. The larger facility can be drawn down beginning in September, and again in August 2020 and March 2021, if WeWork meets certain performance targets, one of the people said.