WeWork bond prices plunged to record-low on possible debt-laden financing


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WeWork bond prices plunged to record-low on possible debt-laden financing

On Tuesday, the 15th of October 2019, prices of US junk bonds of shared online workspace provider, WeWork, owned by the We Company, a real estate industry giant, was tottered to an all-time low, trading 76 cents on the dollar during preparation of the report, October 15th, GMT 23.55, as the company’s planned financing options which would likely to include a hefty sum of $2 billion in unsecured notes with a 15 per cent coupon, had added to investors’ worries following a postpone of its initial public offering last month.

Aside from that, according to data revealed by Refinitiv Eikon, the shared online workspace provider’s junk bond worth of $702 million at a rate of 7.875 per cent due to be matured by May 2025, had last been trading down by 12.5 per cent, shrugging off 25.7 percent of its valuation from a record-high reached during mid-August.

In point of fact, latest downhill slide of WeWork’s junk bonds gained momentum on Tuesday (October 14th) following a Bloomberg report published late on Monday (October 13th) saying the parent company of WeWork, the We Company had been nearing a $5 billion in debt-package from the US lender JPMorgan Chase & Co.

that might involve an additional $2 billion in bonds, instead of selling off a majority stake to the Japanese investment conglomerate, SoftBank Group Corp., an influential stakeholder in WeWork.