WeWork Provides November Business Update and Announces Agreement to Extend Secured Credit Commitments
December 06 2021 - 6:29AM
Business Wire
WeWork Inc. (NYSE: WE) (“WeWork”), one of the leading global
flexible space providers, today provided a business update of key
operational metrics for November 2021 and announced agreements to
extend its secured credit commitments, which resulted in an
extension of $1.75 billion of total liquidity from February 2023 to
February 2024:
November Business Update
Following positive momentum seen in the second and third quarter
of 2021, WeWork saw continued growth across key metrics in October
and November, including memberships, physical occupancy, and desk
sales.
Preliminary November highlights include:
- WeWork’s global real estate portfolio included 756 locations
across 38 countries, supporting approximately 913,000 workstations
and 577,000 physical memberships.
- WeWork’s consolidated real estate portfolio included 624
locations across 33 countries, supporting approximately 747,000
workstations and 458,000 physical memberships.
- Preliminary consolidated physical occupancy rate was 61% in
November, a two percentage point improvement from 59% physical
occupancy in October. Including incremental net memberships that
are contracted to move in, preliminary physical occupancy would
increase to 63% in November, a two percentage point improvement
from 61% in October.
- Preliminary consolidated gross desk sales were 55,000 in
November 2021, equating to 3.3 million square feet sold. This marks
an increase from 45,000 gross desks sold in October 2021, equating
to approximately 2.7 million square feet. Preliminary consolidated
new desk sales were 30,000 in November 2021, an increase from
25,000 in October 2021.
- Preliminary All Access memberships increased to 41,000 in
November 2021, up from 38,000 in October 2021. These All Access
memberships represent an additional five percentage points of
occupancy.
- Enterprise members accounted for 47% of total physical
memberships.
- Overall average commitment length stood at 20 months.
Letter of Credit Facility and Senior Secured Notes
WeWork and SoftBank Group Corp. (“SoftBank”) have agreed to
extend WeWork’s commitments for a total of $1.75 billion of
liquidity from February 2023 to February 2024 through: i) an
amendment to WeWork’s existing letter of credit facility pursuant
to which its maturity date was extended from February 10, 2023 to
February 9, 2024 with total commitments of $1.25 billion as of
February 10, 2023 through February 9, 2024; and ii) an agreement to
extend the $500 million senior secured notes commitment from
Starbright WW LP, a wholly-owned subsidiary of SoftBank, from
February 2023 to February 2024.
About WeWork
WeWork (NYSE: WE) was founded in 2010 with the vision to create
environments where people and companies come together and do their
best work. Since then, we’ve become one of the leading global
flexible space providers committed to delivering technology-driven
turnkey solutions, flexible spaces, and community experiences. For
more information about WeWork, please visit us at
https://wework.com.
Forward-Looking
Statements
Certain statements made in this press release may be deemed
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. These
forward-looking statements generally are identified by the words
“believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “pipeline,” “may,”
“should,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Although WeWork
believes the expectations reflected in any forward-looking
statement are based on reasonable assumptions, it can give no
assurance that its expectations will be attained, and it is
possible that actual results may differ materially from those
indicated by these forward-looking statements due to a variety of
risks, uncertainties and other factors. Such factors include, but
are not limited to, WeWork’s ability to refinance, extend,
restructure or repay near and intermediate term debt; its
indebtedness; its ability to raise capital through equity
issuances, asset sales or the incurrence of new debt; retail and
credit market conditions; impairments; its liquidity; changes in
general economic conditions, including as a result of the COVID-19
pandemic; delays in customers and prospective customers returning
to the office and taking occupancy as a result of the COVID-19
pandemic and the emergence of the Delta, Omicron or other variants
leading to a parallel delay in receiving the corresponding revenue;
and WeWork’s inability to implement its business plan or meet or
exceed its financial projections. Forward-looking statements speak
only as of the date they are made. WeWork discusses these and other
risks and uncertainties in its annual and quarterly periodic
reports and other documents filed with the U.S. Securities and
Exchange Commission. WeWork may update that discussion in its
periodic reports, but otherwise takes no duty or obligation to
update or revise these forward-looking statements, whether as a
result of new information, future developments, or otherwise. The
business update contained herein represents preliminary and
estimated results that are based on management’s initial review of
operations for November 2021 and remain subject to adjustment.
Source We Work Category: Investor Relations
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version on businesswire.com: https://www.businesswire.com/news/home/20211206005409/en/
Investors Chandler Salisbury investor@wework.com
Media Nicole Sizemore press@wework.com
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