By Paul A. Harris
Portland, Ore., Dec. 9 – Dealers priced $550 million of WeWork Cos. LLC/WW Co-Obligor 5% senior notes due July 10, 2025 (CCC+/CCC-) at 85.989 to yield 9¾% in a secondary sale on Thursday, according to market sources.
The yield printed in the middle of the 9 5/8% to 9 7/8% yield talk. Initial talk had the notes coming at a large original issue discount of 85.63 to yield 9 7/8%.
The deal had a notable following among hedge funds, according to a trader, who added that the offer was heard to have been playing to more than $750 million of orders.
J.P. Morgan Securities LLC managed the sale.
The Thursday trade was a secondary sale of notes held by an affiliate of SoftBank. No proceeds will go to WeWork, a commercial real estate company based in New York.
| Issuer: | WeWork Cos. LLC/WW Co-Obligor
|
| Amount: | $550 million
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| Issue: | Senior notes
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| Maturity: | July 10, 2025
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| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 5%
|
| Price: | 85.989
|
| Yield: | 9¾%
|
| Spread: | 854 bps
|
| Call protection: | Non-callable
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| Trade date: | Dec. 9
|
| Settlement date: | Dec. 16
|
| Ratings: | S&P: CCC+
|
| Fitch: CCC-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9 5/8% to 9 7/8%
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