WeWork is running out of cash fast, and, according to Bloomberg, the real-estate firm is favoring JPMorgan to help it refinance.
The refinancing package would come to roughly $5 billion and may also include $2 billion of unsecured payment-in-kind with a weighty 15% coupon, a source told Bloomberg.
The news came a day after it was reported that SoftBank was looking to take a controlling stake in WeWork. The Japanese investment giant has long been one of WeWork’s major investors, so far investing at least $11 billion into the firm. The controlling stake would be roughly worth $10 billion, a fraction of the $47 billion at which SoftBank originally valued the firm.
People familiar with the situation told Bloomberg the SoftBank investment was being viewed as a “backup plan,” as a takeover by the Japanese firm would dilute employees’ holdings.
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