Flexible office operator WeWork has cut its net debt by $1.5bn (£1.2bn) and pushed out the maturity of some of its borrowing by two years to 2027.
The company has struck a series of deals with investors representing more than 60% of its bonds, which will result in funding of more than $1bn, including $540m in new funding, $175m in new capital commitments and $300m in rolled capital commitments. The investor group includes King Street Capital Management, BlackRock and Brigade Capital Management.
SoftBank, meanwhile, will swap $1bn of unsecured notes to equity and make discounted exchanges of other notes, cutting WeWork’s debt by $1.5bn.
The company has also extended its financial year 2025 maturity by two years, meaning that some $1.9bn of debt will now mature in 2027.
PJT Partners and Kirkland & Ellis advised WeWork. Houlihan Lokey and Weil, Gotshal & Manges advised SoftBank, while Ducera Partners and Davis Polk & Wardwell advised the bondholders.
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