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WeWork unit amends, extends credit agreement
By Mary-Katherine Stinson
Lexington, Ky., Feb. 17 – WeWork Inc.’s wholly owned subsidiary WeWork Cos. LLC entered a sixth amendment to its existing credit agreement on Feb. 15, according to an 8-K filing with the Securities and Exchange Commission.
The amendment makes several changes to the junior tranche obligations.
It provides for an increased additional commitment of $120 million for the junior letter-of-credit tranche and the issuance of the letter of credit in that amount. The additional commitment is provided by Oneim Fund I LP, the incoming junior letter of credit participant.
The sixth amendment junior letter of credit was fully drawn thereby increasing the junior tranche reimbursement obligations to $470 million from $350 million.
The termination date of the junior tranche was extended to March 7, 2025 from Nov. 30, 2023.
The interest rate margin of the junior letter-of-credit tranche was increased to 990 basis points from 650 bps for reimbursement obligations, which are based on SOFR.
The amendment appointed Softbank Vision Fund II-2 LP as the SVF obligor for the junior tranche, replacing Softbank Group Corp.
There was also an increase in the senior letter-of-credit tranche to a total of approximately $960 million.
In addition, on Feb. 10, the previously scheduled reduction of commitments in respect of the senior letter-of-credit tranche to $930 million from approximately $1.1 billion became effective. As a result, and because of the sixth amendment commitment increase, as well as the total amount of letters of credit outstanding under the senior tranche, approximately $105 million of contingent obligations under the senior letter-of-credit tranche were required to be cash collateralized.
WeWork is a New York-based provider of shared workspaces and related business services.
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