SoftBank is adding $1.1 billion (Dh4bn) to its WeWork commitment as the co-working company weathers declining membership amid the coronavirus pandemic, according to a staff memo obtained by Bloomberg News.
The new financing, “another sign of SoftBank’s continued support for our business,” boosts the New York-based company’s available cash and unfunded cash commitments to $4.1bn, according to chief financial officer Kimberly Ross’s memo, the contents of which were confirmed by a spokeswoman. The investment is in the form of senior secured notes.
“Covid-19 has had an impact on our business,” Mr Ross wrote. While WeWork’s second-quarter revenue rose 9 per cent to $882 million from a year earlier, that marked a decline from its $1.1bn haul in this year’s first three months. The company’s membership base fell 12 per cent to 612,000 in the second quarter from that prior period.
“We’ve seen renewed demand from leading enterprise companies as they look for flexibility on a global scale,” Mr Ross wrote. The proportion of enterprise members was 48 per cent in the second quarter, a slight increase from the first.
The company has been focused on whittling costs after its initial public offering was shelved last year. Its cash burn or free cash outflow was $671m in the quarter, due to $116m in non-recurring restructuring expenses which included severance linked to layoffs. Still, the cash burn was less than the $1.3bn in WeWork’s peak outflow in the fourth quarter of 2019, Mr Ross noted.
The firm recently exited leases for would-be locations in Baltimore’s Harbor Point and at 149 Madison Avenue in Manhattan. It has 843 locations in 150 cities across 38 countries.
The new investment from SoftBank comes after its roughly $100bn Vision Fund recorded losses after writing down WeWork’s valuation to $2.9bn, down more than 90 per cent from its $47bn peak. SoftBank has invested more than $10bn in WeWork.
Last month, We Co, the parent of WeWork, asked a judge to dismiss a lawsuit brought by two of its board members against SoftBank for reneging on a $3bn offer to buy the co-working company’s closely held shares.
The new debt financing replaces a $1.1bn commitment that was conditional on the tender offer agreed to last October, a SoftBank representative said.
WeWork’s $669m of 7.875 per cent senior unsecured notes due May 2025 last traded on August 5 at 70 cents on the dollar, more than double a low of 35.25 cents on the dollar in March, according to Trace data.
COMPANY PROFILE
Company name: SimpliFi
Started: August 2021
Founder: Ali Sattar
Based: UAE
Industry: Finance, technology
Investors: 4DX, Rally Cap, Raed, Global Founders, Sukna and individuals
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Results
2pm: Handicap (PA) Dh80,000 1,600m; Winner: AF Al Baher, Bernardo Pinheiro (jockey), Ernst Oertel (trainer).
2.30pm: Handicap (TB) Dh100,000 1,600m; Winner: Talento Puma, Xavier Ziani, Salem bin Ghadayer.
3pm: Handicap (TB) Dh90,000 1,950m; Winner: Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
3.30pm: Jebel Ali Stakes Listed (TB) Dh500,000 1,950m; Winner: Mark Of Approval, Patrick Cosgrave, Mahmood Hussain.
4pm: Conditions (TB) Dh125,000 1,400m; Winner: Dead-heat Raakez, Jim Crowley, Nicholas Bachalard/Attribution, Xavier Ziani, Salem bin Ghadayer.
4.30pm: Jebel Ali Sprint (TB) Dh500,000 1,000m; Winner: AlKaraama, Antonio Fresu, Musabah Al Muhairi.
5pm: Handicap (TB) Dh100,000 1,200m; Winner: Wafy, Richard Mullen, Satish Seemar.
5.30pm: Handicap (TB) Dh90,000 1,400m; Winner: Cachao, Tadhg O’Shea, Satish Seemar.
Manchester United's summer dealings
In
Victor Lindelof (Benfica) £30.7 million
Romelu Lukaku (Everton) £75 million
Nemanja Matic (Chelsea) £40 million
Out
Zlatan Ibrahimovic Released
Wayne Rooney (Everton) Free transfer
Adnan Januzaj (Real Sociedad) £9.8 million
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
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Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
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GAC GS8 Specs
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Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Killing of Qassem Suleimani
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Zayed Sustainability Prize
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Australia tour of Pakistan
March 4-8: First Test, Rawalpindi
March 12-16: Second Test, Karachi
March 21-25: Third Test, Lahore
March 29: First ODI, Rawalpindi
March 31: Second ODI, Rawalpindi
April 2: Third ODI, Rawalpindi
April 5: T20I, Rawalpindi
Playing records of the top 10 in 2017
How many games the top 10 have undertaken in the 2017 ATP season
1. Rafael Nadal 58 (49-9)
2. Andy Murray 35 (25-10)
3. Roger Federer 38 (35-3)
4. Stan Wawrinka 37 (26-11)
5. Novak Djokovic 40 (32-8)
6. Alexander Zverev 60 (46-14)
7. Marin Cilic 43 (29-14)
8. Dominic Thiem 60 (41-19)
9. Grigor Dimitrov 48 (34-14)
10. Kei Nishikori 43 (30-13)
