WeWork rallies lenders to borrow $6 billion before IPO

wework

Shared workspace provider, WeWork said it has rallied about 10 lenders to borrow a total sum of $6 billion.

The loan is to ensure WeWork has enough cash pile to shore up its balance sheet before its widely-publicized initial public offering, IPO.

Despite being the biggest player in the shared office space for startups and small businesses, WeWork is a loss-making venture.

According to Reuters, some of the lenders include Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley, Citigroup, Wells Fargo, Credit Suisse, Barclays, UBS, Deutsche Bank and HSBC.

Reuters reported that least 10 banks had committed either US$500m or US$750m each to the loans.

The loan will be offered to additional banks later this month, include a US$2bn letter of credit facility and a US$4bn delayed-draw term loan. Pricing on the delayed-draw loan is 475bp over Libor and will come with a three-year maturity after the completion of the IPO.