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WeWork obtains $1B from Japan's SoftBank for overseas expansion


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WeWork obtains $1B from Japan's SoftBank for overseas expansion

WeWork Cos. secured $1 billion investment from Japan-based SoftBank Group Corp. in the form of a convertible bond, to raise its existing cash to $4 billion, the Financial Times reported Aug. 9.

The bond is subordinated to WeWork's $702 million bond issuance completed in April. The company will pay 2.8% interest on the new bond, starting from September 2019. SoftBank has the option to convert the bond into WeWork stock once the flexible workspace provider closes its next round of equity fundraising.

The funds will be used to boost the company's foreign portfolio through the construction of new office space, and the purchase of assets and leaseholds, the FT said.

WeWork's net loss widened in the first half to $723 million, partly due to the mismatch in timing between the refurbishment and the opening of its new sites, the publication noted, citing CFO Artie Minson.

SoftBank had already participated in a funding round for WeWork's subsidiary in China, which raised $500 million from investors including the Trustbridge Partners and Hony Capital private equity groups.