WeWork looks for $10bn loan ahead of stock market debut

Josh Hall's picture

Office space chain WeWork is reportedly trying to raise billions of dollars in new loans ahead of its anticipated stock market float.

The Times reports that the company is looking for between $3 billion and $4 billion in new debt financing, with the option for the facility to eventually rise to as much as $10 billion.

Per the Wall Street Journal, WeWork's cofounder and chief executive Adam Neumann recently met with JP Morgan head Jamie Dimon and Goldman Sachs chief executive David Solomon to negotiate the terms of a deal in which the two banks would structure the raise.

WeWork indicated its intention to go public when it filed preliminary papers with the US Securities and Exchange Commission in December.

The company is the world's second-highest valued startup, but it has failed to stem serious losses.

It recorded losses of $1.9 billion in 2018, against revenue of $1.8 billion. That loss was up from $886 million in the previous year.

WeWork's hunt for new loans follows the demise of a deal with Softbank.

The Japanese giant had indicated that it would inject $16 billion into the office chain, but in the event it chose to invest just $2 billion amid shareholder concern over WeWork's valuation.

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