Goldman Sachs provides WeWork with $1.75 credit line

In a statement, shared workplace operator WeWork disclosed, it has arranged a $1.75 billion letter of credit with Goldman Sachs, which is in the process of being syndicated and it expects to tap the fund in January 2020.

The line of credit is part of SoftBank Group Corp’s $9.5 billion bailout plan that was formally announced in October 2019 when WeWork was on the brink of running out of cash following changes in its plans to go public.

“We are pleased that WeWork and SoftBank Group Corp have entered into a commitment letter with Goldman Sachs for a new $1.75 billion senior secured letter of credit facility,” said WeWork in a statement. “The facility is in the process of syndication and is expected to be available in January”.

The statement also mentions that WeWork will not be required to post cash collateral on the new credit facility.

When the bailout was announced, SoftBank had said funding for the new debt would occur after the tender offer was completed.

As per a source with knowledge of the matter, the tender is expected to be completed after the first quarter of 2020, and is subject to regulatory approvals and closing conditions.

The line of credit is expected to free up nearly $800 million in cash, said the source.

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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