WeWork Cos. sold $702 million in bonds Wednesday, becoming the latest startup to win over debt investors despite a cash-burning history that is atypical for a bond issuer. WeWork, a New York-based office-space provider with a hip reputation and $20 billion valuation, was able to sell its seven-year bonds at par with a 7.875% interest rate, people familiar with the matter said. That rate was in line with the guidance set by a JPMorgan-led group of underwriters on Tuesday, although the size of the deal was increased from $500...
WeWork has raised $ 702 m through a junk - bond issuance , after announcing at the beginning of the week that it hoped to raise $ 500 m . The fundraise comes following garnering $ 4.4bn in venture capital from investors including Japan 's SoftBank . Although the company 's revenues grew dramatically last year , doubling to $ 822 m , its costs rose even faster , more than doubling to $ 1.81bn . Bond documents reveal the company paid $ 18bn in rent from more than 14 million square feet of office space . Proceeds from the bond issuance will be used to fund Facebook 's rapid expansion .