Japanese conglomerate SoftBank is reportedly negotiating a US$2 billion letter of credit (L/C) facility to part-finance its acquisition of troubled shared workspace provider, WeWork.

Including any L/C facility, Softbank is expected to provide US$5 billion in new financing.

Financing package

The overall financing package put together by Softbank is expected to comprise the L/C facility, senior secured notes and junior unsecured notes.

The notes are expected to be syndicated, with some of the capital coming from sources other than SoftBank.

Massive devaluation

The deal is believed to value WeWork at between US$7.5 billion and US$8 billion.

New York based WeWork had announced its intention to list in December last year and raised around US$10 billion from private investors on the basis of an earlier US$47 billion private market valuation.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.