Japan’s SoftBank Group has sold $550 million worth of WeWork debt it had provided the loss-making office-sharing group during its liquidity crisis more than a year ago.
The Tokyo-based conglomerate offloaded the debt, which carried a 5% coupon and matures in July 2025, at about 86 US cents on the dollar.
The low price pushed up the yield, which moves inversely to the price, on the bonds to 9.75%, underscoring their lacklustre reception.
The debt sold was part of a $2.2 billion rescue package WeWork struck with SoftBank in 2019 after an aborted initial public offering.
WeWork finally went public in October, listing its shares on the New York Stock Exchange through a merger with a SPAC. That move raised nearly $1.3 billion for the group.
In New York, WeWork shares closed down more than 3.3% on Thursday to $8.44. The stock has fallen about 12% in the past month.
- George Russell