WeWork confirms an up to $8 billion lifeline from SoftBank Group; names new executive chairman
Confirming earlier reports, The We Company and SoftBank Group agreed to a new capital infusion which will see SoftBank committing $5 billion in new financing and issuing a tender offer for another $3 billion in buybacks for shareholders.
The company also said it would accelerate an existing commitment to put $1.5 billion into the short-term real estate rental company.
Under the specific terms of the deal, SoftBank will accelerate a $1.5 billion cash infusion into WeWork that was expected in April 2020 for $11.60 per share. That cash is expected to come in seven days after the deal is signed (subject to shareholder approval).
There’s also the tender offer for up to $3 billion worth of non-SoftBank owned shares at a price of $19.19 per share, which will begin in the fourth quarter of this year, with closing subject to regulatory approvals.
Finally, there’s a joint venture share swap where all of SoftBank Vision Fund’s interests in regional joint ventures outside of Japan will be exchanged for WeWork shares at a price of $11.60 per share and a debt facility consisting of $1.1 billion in senior secured
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