WeWork Restructuring Presentation Deck
Introduction
WeWork Inc. ("WeWork" or the "Company"), the global leader in flexible workspace, is pursuing a comprehensive operational and balance sheet restructuring
to optimize its location footprint and de-lever the balance sheet
Portfolio optimization efforts that have been taking place out-of-court over the last several weeks are expected to continue during the in-court process
The balance sheet restructuring will right size the capital structure for the Company's pro forma earnings profile
The Company prepared a preliminary Business Plan to assist with stakeholder assessment of the situation
The Business Plan reflects material improvement in financial performance going forward relative to historical results primarily due to the assumed portfolio
optimization impacts
Earnings are also expected to increase over the forecast period with assumed improvement in occupancy rates, ARPM, and SG&A expense, amongst other
factors
However, the Business Plan is premised on certain assumptions related to impact of the Company's portfolio optimization efforts that will be further refined
as there is more visibility into actual exits and lease savings achieved
The Company has obtained support from approximately 92% of its secured notes, including SoftBank, for the balance sheet restructuring
The Restructuring Support Agreement ("RSA") contemplates a wholesale de-leveraging transaction in which substantially all prepetition claims will be
equitized and/or cancelled
RSA parties include (i) an ad hoc group of bondholders representing approximately 89% of the First Lien Series I Notes and approximately 85% of the Second
Lien Notes, (ii) SoftBank, 100% holder of each of the First Lien Series II Notes, Second Lien Exchangeable Notes, and Third Lien Exchangeable Notes, and
(iii) Cupar Grimmond, 100% holder of the First Lien Series III Notes
Post-restructuring WeWork is expected to be a much stronger company with a significantly healthier lease portfolio and balance sheet
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