Shares of WeWork Inc. WE jumped 3.3% to trade back above the $1 mark in morning trading Friday, after the flexible work space provider announced agreements a group of investors that includes most of its bondholders to reduce debt and bolster liquidity. The “ad hoc” group includes Softbank Corp.’s SOBKYJP:9434Vision Fund II, a third-party investor and a group representing more than 60% of its public bonds. The agreements will collectively debt by $1.5 billion, through the equitization of about $1.0 billion of Softbank notes, and will extend a “significant maturity wall” to 2027 from 2025. After closing, WeWork will have less than $2 billion in net debt. The company will also get a liquidity boost of more than $1 billion, including $540 million in new funding, $175 million in new capital commitments and $300 million in rolled capital commitments. Separately, WeWork said it plans a late-filing notification to the Securities and Exchange Commission, as it needs more time to file its 2022 annual report to reflect these debt and liquidity agreements. The stock, which had closed below $1 the previous five sessions, including a record low of 86 cents on March 15, has plunged 36.0% over the past three months while the S&P 500 SPX has gained 2.4%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Read Full Story
- : 2-year Treasury jumps back above 4% as selloff in bonds gains steam - March 21, 2023
- : ‘Rushed action leads to more pain’: Where should I put my cash amid this banking crisis? Is my money safe? - March 21, 2023
- : U.S. Xpress to be bought by Knight-Swift for a 4-fold premium, in a deal valued at more than $800 million - March 21, 2023
