Brief: WeWork To Become Publicly Traded Via SPAC Merger With Bowx Acquisition

Wework

26/03/2021 11:29

March 26 (Reuters) - WeWork:
    * WEWORK TO BECOME PUBLICLY TRADED VIA SPAC MERGER WITH BOWX
ACQUISITION CORP
    * SAYS TRANSACTION VALUES WEWORK AT AN INITIAL ENTERPRISE
VALUE OF
APPROXIMATELY $9 BILLION
    * SAYS TRANSACTION IMPLIES A PRO FORMA INITIAL ENTERPRISE
VALUE OF
APPROXIMATELY $9 BILLION FOR WEWORK
    * SAYS TRANSACTION WILL PROVIDE WEWORK WITH ABOUT $1.3
BILLION OF
CASH WHICH WILL ENABLE THE COMPANY TO FUND ITS GROWTH PLANS INTO
THE FUTURE
    * SAYS ENTERPRISE COMPANIES NOW MAKE UP MORE THAN 50% OF
WEWORK'S
MEMBERSHIPS, UP FROM JUST 10% IN 2015
    * SAYS GOING FORWARD, CO INTENDS TO EXPAND BEYOND ITS CORE
BUSINESS THROUGH ITS ON DEMAND, ALL ACCESS, AND PLATFORM
OFFERINGS
    * SAYS DEAL TO BE FUNDED WITH BOWX'S $483 MILLION OF CASH IN
TRUST
IN ADDITION TO A FULLY COMMITTED $800 MILLION PRIVATE PLACEMENT
INVESTMENT
    * SAYS HAS A $4.0 BILLION TOTAL SALES PIPELINE AND AN
ESTIMATED
$1.5 BILLION IN COMMITTED 2021 REVENUE
    * SAYS DEAL WILL BE FUNDED WITH BOWX’S $483 MILLION OF CASH
IN
TRUST AND FULLY COMMITTED $800 MILLION PRIVATE PLACEMENT
INVESTMENT AT $10.00 PER SHARE
    * SAYS $800 MILLION PRIVATE PLACEMENT INVESTMENT LED BY
INSIGHT
PARTNERS, FUNDS MANAGED BY STARWOOD CAPITAL GROUP, FIDELITY
MANAGEMENT & RESEARCH COMPANY LLC
    * SAYS AFTER DEAL CLOSES, REPRESENTATIVES OF SOFTBANK GROUP,
SOFTBANK VISION FUND WILL COMPRISE A MINORITY NUMBER OF THE NINE
BOARD SEATS
    * SAYS $800 MILLION PRIVATE PLACEMENT INVESTMENT ALSO LED BY
CENTAURUS CAPITAL, AND FUNDS AND ACCOUNTS MANAGED BY BLACKROCK
    * SAYS UPON CLOSING, EXPECT CO TO HAVE ABOUT $1.9 BILLION OF
CASH
ON BALANCE SHEET AND TOTAL LIQUIDITY OF $2.4 BILLION
    * SAYS MARCELO CLAURE AND SANDEEP MATHRANI WILL CONTINUE TO
LEAD
CO AS EXECUTIVE CHAIRMAN AND CEO, RESPECTIVELY
    * SAYS FOLLOWING DEAL CLOSING, VIVEK RANADIVÉ OF BOWX AND
DEVEN
PAREKH OF INSIGHT PARTNERS WILL JOIN THE CO'S BOARD
    * SAYS POST-TRANSACTION 9 -MEMBER BOARD WILL BE MAJORITY
INDEPENDENT, WITH INITIAL BOARD COMPRISED OF MATHRANI,
INDIVIDUALS DESIGNATED BY INVESTORS

Source text: (https://we.co/39fmU0K)
Further company coverage:  BOWX.O 

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