WeWork today announced that it has agreed to issue and sell $702 million in aggregate principal amount of senior notes due in 2025 (the “Notes”).
The Notes will have an annual interest rate of 7.875%, and the transaction is expected to close on April 30, 2018, subject to customary closing conditions.
WeWork intends to use the net proceeds from this offering for general corporate purposes as it continues to pursue a disciplined and focused global expansion, invest in product and service offerings to enhance value to its members and communities and invest in technology to optimize the way it programs space. Pending close of this transaction and including remaining contractual commitments from SoftBank, WeWork will have over $3 billion of cash and cash commitments on a pro forma basis.
The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The Notes have been offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.
This announcement does not constitute an offer to sell or a solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.