WeWork nabs US$1.75 billion funding from Goldman Sachs
US-based co-working space startup WeWork announced on Tuesday that it has received US$1.75 billion letters of credit from Goldman Sachs.
“We are pleased that WeWork and SoftBank Group Corp. have entered into a commitment letter with Goldman Sachs for a new US$1.75 billion senior secured letter of credit facility,” said WeWork. The company said that the facility is still being syndicated to be available in January.
The new line of credit is part of SoftBank’s US$5 billion pledged debt financing for WeWork, which was announced in October after the US company withdrew its plans to go public.
The US$9.5 billion bailouts from SoftBank includes up to a US$3 billion tender offer and a US$1.5 billion payment from SoftBank due next year, in addition to the US$5 million debt financing.
WeWork will not be asked to post cash collateral for the newest letter of credit, which is expected to free up about US$800 million in restricted cash.
Goldman Sachs is the owner of 1.4 per cent stake in WeWork, but the company said it lost US$80 million in its stake in the company in the third quarter.