Company News

WeWork bond prices at record low on possible debt-heavy financing deal

FILE PHOTO: A WeWork logo is seen outside its offices in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch/File Photo

NEW YORK (Reuters) - The price of WeWork’s U.S. junk bond fell to an all-time low on Tuesday, last trading at 78 cents on the dollar, as the company weighed financing options including a package that may include at least $2 billion of unsecured notes with a 15% coupon.

The office sharing company's May 2025 7.875% junk bond worth $702 million 96208LAA9= was last down 12.5%, down 25.7% from a record high in mid-August.

WeWork parent We Companies is leaning toward a near $5 billion financing package led by JPMorgan Chase & Co JPM.N, instead of selling a controlling stake to Japan's SoftBank Group Corp 9984.T, Bloomberg reported late on Monday. That debt package may include the additional $2 billion in bonds, Bloomberg said.

Reporting by Kate Duguid