WeWork has received $1.75 billion in financing round led by Goldman Sachs, which should free up around $800 million that WeWork had set aside to satisfy covenants on its previous credit line.
This line of credit is the first obstacle SoftBank has cleared in its effort to put together $5 billion in debt financing as part of its bailout package for WeWork. It will also replace existing facilities totaling around $1.1 billion.
“We are pleased that WeWork and SoftBank Group Corp. have entered into a commitment letter with Goldman Sachs,” said Erin Clark, a spokeswoman for WeWork. “WeWork and Softbank are co-obligors on a senior-secured and unsecured basis, respectively.”
WeWork had $575 million in restricted cash at the end of June, but the cash set aside has since increased. According to Clark, WeWork will be able to access the facility next month.
