WeWork, the office space company that is soon scheduled to go public, is reportedly looking to raise cash for the company by selling junk bonds, according to Bloomberg.
It’s an approach taken by Netflix, Uber, and Tesla in the past where companies use brand name to lure investors to fuel growth plans — banking on the idea that those investors value potential when it comes to investments.
WeWork’s flailing IPO plans could see a return to the high yield space to find funding.
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WeWork may be scheduled to go public later this year but could still look to raise cash through selling junk bonds, according to Bloomberg.
Bloomberg, citing a person familiar with the matter, said an unnamed WeWork executive told analysts in a meeting about the plan to sell those junk bonds.
WeWork “plans to rely on junk bonds for funding for the foreseeable future,” the news organization wrote on Monday.
It’s a strategy that’s been used by Netflix, Tesla, and Uber in the past, where companies bank on the idea that investors value the long-term potential of a company that’s ready to buy risky bonds for a better return, …read more
Source:: Businessinsider – Finance