The We Company tries a new approach at raising billions: selling its debt.
Company hopes the move will boost confidence in its business.
The We Company needs to take care of something before its initial public offering: raising a few billion dollars by selling its considerable debt.
The company, which remains unprofitable, wants to raise up to $3 billion or $4 billion through a debt facility that could eventually increase to $10 billion, according to the Wall Street Journal.
The We Company, which rebranded from WeWork earlier this year, lost $1.9 billion last year and has been frequently compared to the two ridesharing companies.
The transaction could be finalized over the next few weeks, and the We Company hopes to move forward with its IPO late this year or early next year.
The We Company would not need to raise as much money from public stockholders if it raises billions in new debt, and the deal also aims to show off the value of WeWork’s leases and its ability to control profitability.