WeWork will seek $6 billion in financing in order to further expand internationally, but it must first do well in its initial public offering in September.
Wall Street analysts have been meeting with the company this week in order to outline its business plans.
Equity analysts were invited to WeWork’s 85 Broad Street location in Manhattan, where CEO Adam Neumann explained the history of the company as well as the firm’s relationships with big name companies such as Microsoft. In the front row, analysts from JPMorgan and Goldman Sachs were seated, indicating which banks have a close relationship to the company.
WeWork revealed that its year-over-year run-rate revenue growth is 105% and its member retention rate is 121% due to businesses in its membership base continuously growing.
The coworking company will seek to borrow money through a $2 billion letter-of-credit facility and a $4 billion delayed-draw term loan. So far, JPMorgan Chase has told rivals it plans to commit up to $300 million to the facilities.
Banks will have to follow through on their commitments only if at least $3 billion is raised in the IPO.