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WeWork’s Debt Deal Has Consequences
CRETech
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1 minute read
Money makes the world go ‘round, even for WeWork.
The company plans to issue billions of dollars in debt to fund its breakneck growth. Yet, while one dollar may be identical to another when it is sitting in a company’s bank account, how it is raised can make a big difference. There are few companies for which that is more the case than WeWork.
The thinking behind the deal is that issuing as much as $4 billion in debt will reassure investors ahead of WeWork’s planned initial public offering that it is able to tap capital markets to fund its growth. Yet this is from a money-losing company most recently valued at $47 billion.
