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Checking In On WeWork’s Cash Situation

WeWork is down to just a few options as its cash crisis intensifies.

Precisely when the office-sharing giant will run out of money isn’t clear to externals, but it’s soon.

That the new capital would prove dilutive should go without saying, The fact, however, underscores the cost of the option to existing shareholders.

The office-sharing company is weighing a potential $5 billion debt package that could include some $2 billion of pay-in-kind bonds with a yield an eye-popping 15%[.]”

That would add to WeWork’s existing debt load, further leveraging a company that has shockingly negative cash flow and a history of staggering operating losses.

WeWork is in danger of failing the cash test, which means that it’s anything but free.

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