WeWork’s bankers are pitching investors on what would be one of the riskiest junk-debt offerings in recent years, sending the company’s existing bonds into freefall. Notably, the financing may include at least $2 billion of unsecured payment-in-kind notes with an unusually hefty 15% coupon, one person said. Earlier in the day, Bloomberg reported on the potential terms for a new debt package. There’s no guarantee the financing package will be completed, as it’s unclear if there’s sufficient demand from banks and debt investors. WeWork is expected to make a decision as soon as this week about which option it will proceed with.

Source: Los Angeles Times October 15, 2019 18:56 UTC