We noted last
month that the company lost $690 million in the first six months of the
year and is expected to generate a loss from operations approaching $3
billion as it burns through tens of millions in cash daily. Analyst
estimate that the company could run out of money by mid-2020.
And now Bloomberg is reporting that WeWork's cash crunch is even more acute:
今日のブルームバーグの報告によるとWeWorkの資金枯渇はもっと差し迫るという:
Analysts had previously estimated that the company would run out of money by the middle of next year.
WeWork had been counting on an initial public offering -- and a $6
billion loan contingent on a successful IPO -- to meet its cash needs,
but that plan unraveled amid questions about its future profitability...
...it needs new financing before the end of November to avoid running out of money, two people familiar with the matter said.
・・・資金枯渇を回避するには11月末までに新たな資金提供元が必要だ、二人の情報通が言う。
FT sources are now indicating that a potential lifeline, otherwise known as a bailout, could be imminent. FTの情報源は現在潜在的な救済元だ、ほかでもない緊急援助、これが差し迫っている。
The bailout of WeWork could be led by JPMorgan Chase and other Wall
Street banks. If no cash infusion by late November, WeWork could enter
into bankruptcy in 1H20, or by next summer.
Global credit rating agency Fitch Ratings downgraded WeWork's credit
rating last week by two notches to "CCC+," putting the SoftBank funded
office-sharing company very deep into junk territory.
"In the absence of an IPO and associated senior secured debt
raise, WeWork does not have sufficient funding to meet its growth plan," Fitch wrote in a note.
Last month's decision to abandon the IPO deprived the company of $3
to $4 billion in funding and $6 billion in a loan package investment
banks promised if it went public.
Since the IPO was pulled and valuations collapsed, WeWork's WE 7.875 01-MAY-2025 junk
bond was last trading at about 82 cents on the dollar (as of Friday 6
am est., according to Tradeweb data, a massive discount to face value,
which indicates doubts the company can repay its debts.
IPOがなくなり、格付けも崩壊し、WoWorkの WE 7.875 01-MAY-2025ジャンクボンドは直近で82セントで売買されている、額面1ドル(東部時間金曜6am、Tradewebのデータだ、額面から大幅に値引きされている、ということは当社が債務を返済できないだろうと見られている。
Without new cash, WeWork is unsustainable; the company could start
liquidating its CRE exposure as it begins the inevitable pre-bankruptcy
shrinking process -- if no cash infusion next month.
"WeWork has raised more than $12 billion to rent office space that it
renovates and then leases to companies. But that strategy has left it
in a precarious position. It has some $47 billion of future rent payments due. On
average it leases its buildings for 15 years. Yet its tenants are
committed to paying only $4 billion, and on average have leases for 15
months."
「WeWorkは$12B以上の資金を投じてオフィススペース改装を行い企業に貸し出す。しかし その戦略は心もとないものだ。将来の賃貸料収入は$47B程度だ。平均してビルを15年貸し出す。しかしながら、テナントが約束する支払いはわずか$4Bだ、そして平均貸し出しは15ヶ月に過ぎない。
With the equity market window shut, and credit markets starting to crack, something that we noted on Thursday, the next question is if WeWork gets a bailout next month.
If not, the WeWork implosion of 2020 could be a spectacular mess and a massive headache for SoftBank/Vision Fund and Wall Street banks - as the company crashes from $47 billion valuation to insolvent in 2 months...
Amazonで買物をしてContrarianJを応援しよう Albert Edwards: This Was The Final Recessionary Shoe, And It Has Now Fallen by Tyler Durden Thu, 06/27/2019 - 12:45 Exactly three months ago, in late March, the 3 month-10 year spread inverted for the first time since 2007... ちょうど3か月前の3月遅くのことだ、3M10Yスプレッドが2007年以来初めて反転した・・・・ ... an event which sparked near-panic in the market as historically curve inversion has preceded the last 7 recessions. ・・・市場は準混乱状態になった、というのも歴史的に見てイールドカーブ反転が過去7回の景気後退の前兆となっているからだ。 However, while the inversion was certainly a memorable event, the question on everyone's lips is how do risk assets perform once the curve flattens and/or inverts. According to backtests from Goldman, since the mid-1980s, significant stock drawdowns (i.e. market crashes) began only when term slope started steepening after being inverted. ...
Powell Keeps The Bond Bull Kicking Written by Lance Roberts | Mar, 21, 2019 In a widely expected outcome, the Federal Reserve announced no change to the Fed funds rate but did leave open the possibility of a rate hike next year. Also, they committed to stopping “Quantitative Tightening (or Q.T.)” by the end of September. 多くの人が予想したとおり、FEDはFFR変更をしないだけでなく来年も不明とした。さらには、QTを9月末に終えると約束した。 The key language from yesterday’s announcement was: 昨日の発表の重要な部分はこういう具合だ: “ Information received since the Federal Open Market Committee met in January indicates that the labor market remains strong but that growth of economic activity has slowed from its solid rate in the fourth quarter . Payroll employment was little changed in February, but job gains have been solid, on average, in recent months, and the unemployment rate has remained low. 「1月のFOMC以来の情報を分析すると、労働市場は強いがQ4に比べると経済成長は鈍化している。2月の雇用環境にほとんど変化がなかった、ここ数ヶ月確実に雇用は増えている、そして失業率は低いままだ。 Recent indicators point to s...
Amazonで買物をしてContrarianJを応援しよう "On The Precipice" by Tyler Durden Mon, 06/24/2019 - 14:30 Authored by Kevin Ludolph via Crescat Capital, Dear Investors: The US stock market is retesting its all-time highs at record valuations yet again. We strongly believe it is poised to fail. The problem for bullish late-cycle momentum investors trying to play a breakout to new highs here is the oncoming freight train of deteriorating macro-economic conditions. 米国株式は記録的バリエーションのもとで再度過去最高を試している。私どもはこれが失敗すると強く信じている。景気拡大終盤で強気のモメンタム投資家が新高値を試そうとしていることの問題は、マクロ経済条件の悪化にある。 US corporate profit growth, year-over-year, for the S&P 500 already fully evaporated in the first quarter of 2019 and is heading toward outright decline for the full year based on earnings estimate revision trends. Note the alligator jaws divergence in the chart be...