WeWork (WE) Defended at Cantor

WeWork (NYSE: WE) Defended at Cantor Fitzgerald

• "After the market closed tonight (12/20), WeWork announced that is has amended terms in relation to its line of credit (LC) facility. The biggest takeaway is that WeWork has effectively moved all of its debt maturities to 2025, giving the company ample time to scale the business and generate positive FCF so that it can repay debt through organic cash generation, in our view. While it still has $350m coming due from its junior LC tranche in November 2023, we are less concerned with this given Softbank (SFTBY, NC) is the obligor on this debt, and if WeWork were not to repay it, Softbank would effectively assume the debt in the form of a lien on WeWork, also payable in 2025. In our view, this makes the recent weakness in shares (down 47.8% in December versus IWM down 7.7%) an attractive buying opportunity."

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