WeWork reaches agreement to convert $1b of SoftBank's debt into equity

WeWork reaches agreement to convert $1b of SoftBank's debt into equity

WeWork at Shoreditch, London. Photo by Uygar Kilic on Unsplash

WeWork Inc said on Friday it had reached a deal to convert about $1 billion of key investor SoftBank Group Corp‘s unsecured notes into equity, in an effort to restructure its finances.

Shares of the company rose 2.2% to $1 before the bell.

The company, which offers workstations, private offices and customized floors, had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but is now gearing up for a potential fallout from a likely economic downturn.

Last month, WeWork forecast weak current-quarter revenue in a sign that its business was feeling the heat of mass layoffs, as companies reduce their real estate footprint.

In January, the New York-based company also planned to eliminate about 300 roles across countries after announcing last year that it would exit about 40 underperforming U.S. locations due to high expenses and a strong U.S. dollar.

Reuters

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