So are they better off supporting the IPO price by exposing themselves another $3b (20%), writing down the IPO by 50% which likely is at least $3b in losses, or delay?
And muddying their view, as I commented yesterday, is the fact that there is a huge debt contingency surrounding this IPO.
EG if WeWork does NOT raise at least $3billion in this IPO they will be in default of a contingency with lenders that will WITHHOLD a committed $6billion credit line. This huge credit facility is their growth engine forward (b).
So are they better off supporting the IPO price by exposing themselves another $3b (20%), writing down the IPO by 50% which likely is at least $3b in losses, or delay?
And muddying their view, as I commented yesterday, is the fact that there is a huge debt contingency surrounding this IPO.
EG if WeWork does NOT raise at least $3billion in this IPO they will be in default of a contingency with lenders that will WITHHOLD a committed $6billion credit line. This huge credit facility is their growth engine forward (b).
(a) https://www.reuters.com/article/us-wework-m-a-softbank/wewor....
(b) https://www.bloomberg.com/news/articles/2019-08-01/wework-se....