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...
What Could Go Wrong? The Fed's Warns On Corporate Debt by Tyler Durden Thu, 05/09/2019 - 11:44 Authored by Lance Roberts via RealInvestmentAdvice.com, “So, if the housing market isn’t going to affect the economy, and low interest rates are now a permanent fixture in our society, and there is NO risk in doing anything because we can financially engineer our way out it – then why are all these companies building up departments betting on what could be the biggest crash the world has ever seen? What is more evident is what isn’t being said. Banks aren’t saying “we are gearing up just in case something bad happens.” Quite the contrary – they are gearing up for WHEN it happens. When the turn does come, it will be unlike anything we have ever seen before. The scale of it could be considerable because of the size of some...
The Next Decade Will Likely Foil Most Financial Plans by Tyler Durden Tuesday, Jan 26, 2021 - 15:20 Authored by Lance Roberts via RealInvestmentAdvice.com, There are many individuals in the market today who have never been through an actual “bear market.” These events, while painful, are necessary to “reset the table” for outsized market returns in the future. Without such an event, it is highly likely the next decade will foil most financial plans. 現在の市場参加者の多くは本当の「ベアマーケット」を経験していない。こういう事が起きると、痛みを伴うが、将来の大きなリターンを可能にするために必要なちゃぶ台返しとなる。これがないと、多くのファイナンシャルプランは今後10年ひどいことになりそうだ。 No. The March 2020 correction was not a bear market. As noted: 2020年3月の調整はベアマーケットと呼べるようなものではなかった。以前にも指摘したが: A bull market is when the price of the market is trending higher over a long-term period. ブル相場とは長期に渡り市場価格が上昇するものだ。 A bear market is when the previous advance breaks, and prices begin to trend lower. ベア相場とはこれまでの上昇が止まり、市場価格が下落し始めることだ。 The chart belo...
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