WeWork SPAC Presentation Deck
Liquidity and cash flow projections
Expected to achieve breakeven Adj. EBITDA by Q4′21E, and liquidity is not expected to drop below $1.8bn throughout projection period
Total Liquidity (1)
($ in billions)
($ in millions)
Total Adj. EBITDA (excl. ChinaCo)
1.
2.
3.
Negative impact of non-cash
GAAP straight-line lease cost
$3.42)
2019A
($1,943)
($832)
$2.9
$234
2020A
($1,754)
($554)
$340
$2.2
($49)
Q1 2021E
($424)
($108)
$78
$1.8
$16
Q2 2021E
($321)
($71)
Assumes issuance of $1,283mm of
new equity and liquidity from
$550mm of new SoftBank Senior
Secured Facility(3)
$73
$26
$2.3
Q3 2021E
($171)
($59)
$72
$2.3
($1)
Q4 2021E
$8
($47)
Positive impact of amortization
on lease incentives
Net Capital Expenditures
($2,183)
Please refer to reconciliation for Adj. EBITDA on pg. 46 in the appendix.
Source: Management Projections.
Defined as undrawn financing commitments and global cash. Assumes extension of existing $1.75bn LC facility. Includes $1.1bn Softbank facility until August 2021.
Liquidity includes $2.2B Senior Unsecured Notes starting in FY19A as commitment was received in Q4-2019; facility was not available to draw until 4/1/2020.
Assumes closing of transaction in Q3 2021E and Softbank facility expires in August 2021 undrawn. Assumes $1.1bn facility to be replaced with $550mm new Softbank Senior Secured Facility at a 7.5% interest rate provided
at SPAC signing, available at the earlier of closing of SPAC or August 12, 2021 (maturity date of existing $1.1B Senior Secured) and available for draw no later than Feb 12, 2023 (or if earlier, 18 months from date of closing of
SPAC). Assumes Senior Secured Facility is refinanced thereafter.
$72
Illustratively assumes $550mm of
new SoftBank Senior Secured
Facility (maturing Sept. 2022, 18
months from signing) is refinanced
($13)
$2.1
2022E
$485
($101)
$288
$2.5
($301)
2023E
$1,359
($80)
$296
($487)
$3.4
2024E
$1,988
($61)
$306
($577)
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