WeWork pleased with debt restructuring that pushed maturities to 2027

By Devika Patel

Knoxville, Tenn., May 9 – WeWork Inc. reduced net debt and interest expense and extended its maturities while taking in additional capital through its recent debt restructuring.

The restructuring raised $1 billion of cash, reduced debt by over $1.2 billion, reduced annual cash interest expense by $90 million and extended debt maturities to 2027.

“We couldn't be more pleased with the results of our recently closed debt restructuring transaction and the support received throughout both from SoftBank, our largest shareholder, as well as our bondholders,” chief financial officer Andre Fernandez said on the company’s first quarter ended March 31 earnings conference call on Tuesday.

“The transaction reduces our net debt, provides us with additional capital, lowers our annual cash interest costs and extends the bulk of our debt maturities to 2027,” Fernandez said.

“The restructuring significantly improved our liquidity by providing $1 billion of cash, reduced outstanding debt by over $1.2 billion, reduced annual cash interest expense by $90 million and extended the maturities to 2027,” chairman and chief executive officer Sandeep Mathrani said on the call.

“We now have the runway we need to grow our business and go on the offense versus being on the defense,” Mathrani said.

Cash and cash equivalents were $224 million as of March 31, 2023, compared to $287 million as of Dec. 31, 2022.

Long-term debt was $3,576,000,000 as of March 31, 2023, compared to $3,208,000,000 as of Dec. 31, 2022.

WeWork is a New York-based provider of shared workspaces and related business services.

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