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WeWork Secures $1.1 Billion Loan From Softbank

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Key Points

  • Since investing more than $10 billion in the loss-making property group, SoftBank has agreed to lend $1.1 billion to WeWork.
  • WeWork has not yet tapped the $1.1 billion financing, which, according to two people briefed on the matter, was structured as a senior secured loan.
  • The new loan will help the firm cope with major cash outflows in the second quarter.
  • Visit The Financial Today’s homepage for more stories.

Since investing more than $10 billion in the loss-making property group, SoftBank has agreed to lend $1.1 billion to WeWork, according to a memo sent to employees by WeWork’s chief financial officer on Thursday.

WeWork has not yet tapped the $1.1 billion financing, which, according to two people briefed on the matter, was structured as a senior secured loan.

The new loan will help the firm cope with major cash outflows in the second quarter, Kimberly Ross, the finance chief of the company, wrote.

During the three months to the end of June, WeWork burned through $671 million, up nearly 40 percent from the previous quarter. The amount covered $116 million in payments for restructuring costs such as severance.

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