The US workspace company WeWork is going to raise billions of dollars in debt before it goes public, writes the Wall Street Journal tonight. According to WSJ, WeWork would raise as much as 3 billion to 4 billion dollars in the coming months, citing people familiar with the matter.
The debt offering could grow as big as 10 billion dollars over the next several years, the WSJ writes. The meaning of this offering is to fund the company’s growth until its business is profitable, the people said.
One reason for this debt offering is also the other big IPOs during the spring time, Uber (UBER) and Lyft (LYFT), which are trading below their IPO pricing at the moment.
According to the news, Goldman Sachs Group and JP Morgan Chase & Co are leading the structuring and backing the deal.
WeWork, based in New York, made a 1,9 billion dollars loss last year with a 1,8 billion dollars revenue. The company has been valued at 47 billion dollars this year in the earlier funding rounds.
WeWork filed the IPO at the end of last year and the initial offering is expected to be during this year.