WeWork gets $1.75 billion senior secured letter-of-credit facility

By Sarah Lizee

Olympia, Wash., Feb. 11 – WeWork closed a new $1.75 billion senior secured letter-of-credit facility, according to a press release.

Goldman Sachs, Citibank, DBS Bank, Deutsche Bank, Mizuho, Natixis and Societe Generale participated in the syndication as joint lead arrangers and joint bookrunners, and other banks continue to look into participation in the facility, the company said. Goldman Sachs is the administrative agent.

WeWork, which in December entered into the committed facility together with SoftBank Group Corp., is not required to post any cash collateral under the new facility, making available about $800 million in working capital that was restricted under previous letter-of-credit facilities.

In addition, WeWork entered into a master note purchase agreement in December to formalize SoftBank’s commitment to provide up to $2.2 billion in unsecured debt. This unsecured debt financing, along with SoftBank’s commitment to provide up to $1.1 billion of secured debt financing and SoftBank’s credit support of this new $1.75 billion letter-of-credit facility, are part of a broader agreement with SoftBank reached last fall to bring significant new funding to the company.

WeWork is a New York-based provider of shared workspaces and related business services.

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