The WeWork company and the SoftBank group has agreed to a fresh capital infusion that will see the SoftBank committing around $5 billion in issuing a new tender offer for further #3 billion in the buybacks for the shareholders. The company said that it would had accelerated an existing commitment to keep $1.5 billion to short-term real estate lease company. Under some specific terms, WeWork is going to receive $1.5 billion from the cash infusion of SoftBank in April 2020. The deal has stood at $11.60 per share and with the money which is expected to arrive within seven days has been signed.
In addition, there is also a tender offer for $3 billion which is worth of the non-SoftBank possessed shares at the price of $19.19 in a single share. It will start in 4th quarter in this year and finally there is a joint deal exchange where all the Funding interest of the SoftBank Vision outside the Japan will be swapped for the WeWork shares at a fixed price of $11.60 per share. Without this, there is also a debt facility which consists of $1.1 billion in the senior secured notes, along with a $2.2 billion in the unsecured notes as well as a $1.75 billion letter of the credit facility that will happen when the offer is totally completed.
As the part of their agreement, they confirmed that Adam Neuman will be the board observer while the Chief operating officer of the SoftBank Group named Marcelo Claure will take the position of the executive chairman of WeWork’s board of directors. The chairman and chief executive of the SoftBank Group Corp Masayoshi in a statement said that the SoftBank was a strong believer that the entire world is undergoing through a gigantic transformation in the way people work and WeWork was at the forefront of that revolution. That wasn’t unusual for the leading technology disruptors of the work to experience the growth challenges like WeWork faced.