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Bloomberg
WeWork Inc is in discussions to raise new equity, according to people with knowledge of the matter, after the co-working company’s shares fell by more than half since its October public debut. The stock plunged to a record low on the news.
The talks were kick-started by investor interest, said one of the people, who like the others requested anonymity discussing private plans. The capital raise may be structured as a so-called private investment in public equity, or PIPE, some of the people said. New York-based WeWork is looking at bringing in more than $200 million, another person said.
WeWork’s debt indentures show there are restrictions on the company’s ability to raise new borrowings, people with knowledge of the matter said. The firm has no plans to take on new debt, another person said.
A transaction, if agreed, could be unveiled with the company’s fourth-quarter earnings announcement, which is set for March 11, one of the people said. No decisions have been finalized.
“The company has no plans to issue additional equity at this time,†WeWork said.