The We Company’s bonds slide on news of doubled losses

Company began disclosing finances after last year's bond sale

Mar.March 27, 2019 01:45 PM

The We Company CEO Adam Neumann (Credit: Getty Images)

The We Company saw its bond prices dip on Tuesday, following reports that the company’s losses had doubled in 2018 to $1.93 billion.

The value of the company’s bonds fell to 91 cents on the dollar, down from 92.6 cents the day before, the Financial Times reported. This pushed the yield on the bonds up to 9.8 per cent, according to bond trading platform MarketAxess.

The New York-based co-working firm, formerly known as WeWork, sold $700 million in bonds to investors in April, and the company’s disclosures to bond investors offered a glimpse into the startup’s finances.

In a presentation to bond investors on Monday, the We Company, valued at $47 billion as of January, reported that its aggressive expansion drive had caused the company’s locations, membership and revenue to all more than double in 2018 – but that losses had more than doubled as well.

The We Company’s bonds performed poorly out of the gate, dipping to 96 cents on the dollar in the first week of trading. The bonds traded above par briefly in August, but have broadly declined since then.

The company’s bonds hit a low of 86 cents on the dollar in January, following reports that SoftBank was dialing back an investment commitment from $16 billion to $2 billion. [FT] — Kevin Sun

Related Articles

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

10 East 53rd Street and SL Green's Marc Holliday (Credit: TPG Architecture, Sl Green)

SL Green snags $220M refi for Midtown East office tower

Wesley Edens’s Fortress Investment Group picked up a mortgage bond portfolio for a steal (Credit: Drew Angerer/Getty Images, iStock)

Sharks circle as mortgage lenders shed portfolios at steep discounts

Commercial loans expected to suffer because of the pandemic (Credit: iStock)

March saw fewer CMBS delinquencies. That is likely to change: Fitch

(Credit: iStock)

Thousands of CRE borrowers call on banks for debt relief

Banks, funds, mortgage REITs, and agencies like Fannie Mae and Freddie Mac have all begun adjusting their lending approach in face of the economic downturn (Credit: iStock)

These are the sectors where real estate lending is still happening: report

Angel Oak Cos. CEO Michael Fierman and Flagstar Bancorp Inc. CEO Alessandro DiNello (Credit: Angel Oak, Flagstar, iStock)

Mortgage market dries up for unconventional home loans