WeWork Bonds Tank as Company Pursues JPMorgan Junk-Debt Lifeline
By Davide Scigliuzzo, Michelle F. Davis, Gillian Tan and Sarah McBride
Oct. 15, 2019, 1:50 PM
WeWork’s bankers are pitching investors on what would be one of the riskiest junk-debt offerings in recent years, sending the company’s existing bonds into freefall.
A roughly $5 billion financing package led by JPMorgan Chase & Co. is the company’s preferred option, rather than selling a controlling stake in itself to SoftBank Group Corp., according to people with knowledge of the matter. The structure and terms under discussion may change depending on investor appetite. Notably, the financing may include at least $2 billion of unsecured payment-in-kind notes with an unusually hefty 15% coupon, one person said. The deal...