SFTBY - WeWork said to be in talks to overhaul over $3B of debt raise more cash

2023-03-07 17:11:26 ET

WeWork ( NYSE: WE ) stock advanced as much as 8.8% in extended trading on Tuesday as the struggling flexible office space provider talked with potential investors about restructuring its more than $3B of outstanding debt as well as raising additional cash to keep operating, the New York Times reported, citing two people familiar with the matter.

The negotiations come as Adam Neumann's WeWork ( WE ) saw a cash burn of more than $700M in 2022, the NYT noted. The company disappointed Wall Street last month when it issued Q1 guidance that fell short of the average analyst estimate.

Among the investors weighing a new stake in WeWork ( WE ) is real estate software provider Yardi, the people told the NYT , adding that no deal is guaranteed. Also, Japanese tech conglomerate SoftBank ( OTCPK:SFTBY ) ( OTCPK:SFTBF ), the largest shareholder and debtor of WeWork, is playing a major role in the talks, though no additional funds are expected to be poured into the company.

SoftBank ( OTCPK:SFTBY ) in April 2020 wrote down $6.6B on its investment in WeWork ( WE ) after the value of the company plunged. More recently, WeWork had issued $250M of senior secured notes to a SoftBank fund.

At the beginning of March, WeWork entered a franchise deal with pan-African real estate investor SiSebenza .

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