WeWork in talks for $2.75 billion credit line

Representatives for the bank and WeWork declined to comment. … WeWork’s largest backers include SoftBank Group, which earlier this year decided …
  • The entrance of the WeWork Cos Inc. 85 Broad Street offices in the Manhattan borough of New York on May 22, 2019. Photo: Bloomberg Photo By David 'Dee' Delgado. / © 2019 Bloomberg Finance LP
    The entrance of the WeWork Cos Inc. 85 Broad Street offices in the Manhattan borough of New York on May 22, 2019.
    The entrance of the WeWork Cos Inc. 85 Broad Street offices in the Manhattan borough of New York on May 22, 2019.

    Photo: Bloomberg Photo By David ‘Dee’ Delgado.

Photo: Bloomberg Photo By David ‘Dee’ Delgado.
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The entrance of the WeWork Cos Inc. 85 Broad Street offices in the Manhattan borough of New York on May 22, 2019.
The entrance of the WeWork Cos Inc. 85 Broad Street offices in the Manhattan borough of New York on May 22, 2019.

Photo: Bloomberg Photo By David ‘Dee’ Delgado.

WeWork in talks for $2.75 billion credit line
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WeWork is in talks with banks about arranging a $2.75 billion credit line before a planned initial public offering, according to people with knowledge of the matter.

JPMorgan Chase is leading the potential financing, said the people, who asked not to be identified because the plans aren’t public. Representatives for the bank and WeWork declined to comment.

WeWork, which rents office space and desks to workers around the world, said in April it had filed documents confidentially with the U.S. Securities and Exchange Commission for an IPO. It could be the year’s biggest offering after Uber Technologies’. WeWork’s largest backers include SoftBank Group, which earlier this year decided against taking a controlling stake.

Securing a credit line from Wall Street often precedes an IPO. Companies going public routinely reward banks that make big credit commitments with roles in their IPOs, with lenders sometimes offering better terms on the financing in return.

WeWork was founded in 2010 and rose to become one of the world’s most valuable startups. The New York-based company has ambitions to go beyond the office with nascent businesses in apartment rentals and elementary schools. It took a symbolic step toward encapsulating those goals in January by rebranding itself as We Co., though it hasn’t reincorporated under the new moniker.

In 2014, WeWork obtained a $650 million revolver led by JPMorgan that expires in late 2020, according to data compiled by Bloomberg. The company’s junk-rated bonds, priced in 2018 and due in 2025, closed at $93.50 on Tuesday, a decline from a peak of $99.63 earlier this month

WeWork said earlier this month that its loss narrowed slightly, to $264 million, in the first quarter. Its IPO will test public investors’ appetite for another tech-infused, cash-burning business after Uber’s debut.

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