SoftBank Results Presentation Deck
Details and Progress of the Agreement between the Company
and WeWork in Oct 2019 and in FY20
Existing
commitment of
USD 1.5 bn
Tender offer
Credit support/
notes purchase
Exchange of
SVF1's JV shares
Reduction of exercise price
from USD110.00/share to
USD 11.60/share and early
payment
Tender offer up to USD 3.0
bn at USD 19.19/share
a) Credit support for USD
1.75 bn letter of credit facility
by financial institutions to
WeWork
b) Up to USD 2.2 bn in
unsecured notes to be
issued by WeWork
c) Up to USD 1.1 bn in senior
secured notes to be issued
by WeWork
Exchange of WeWork JV
shares held by SVF1 for
WeWork preferred stock
SoftBank
The Company paid full amount of USD 1.5 bn in Oct 2019.
USD 200 mn was converted into preferred stock in Nov 2019, while the remaining USD 1.3 bn was
converted into preferred stock in Apr 2020.
Group
The Company launched the tender offer in Nov 2019, but terminated it in Apr 2020 as the Company
asserted several of the closing conditions were not satisfied by the deadline.
The Company received warrants
that are exercisable for WeWork
preferred stock at an exercise
price of USD 0.01/ share as
consideration for a) and b)
In settling lawsuits relating to the terminated tender offer, the Company purchased common stock and
preferred stock of WeWork at a price of USD 19.19/share (USD 1.5 bn in total) from (1) We Holdings LLC
(an affiliated holding company of Adam Neumann) via a private sale in Feb 2021, and (2) certain other
shareholders of WeWork via a tender offer launched in Mar 2021 and completed in Apr 2021.
Agreed in Aug 2020, but the
notes have not been issued by
the end of FY20
The Company agreed the followings with We Work and BowX in
conjunction with the agreement relating to the merger transaction
between the two companies:
(1) The conversion and exchange of WeWork preferred stock held by
the Company into common stock of the merged company upon the
merger.
Purchased USD 1.8 bn out of b) (2) For a), extension of credit support by the Company as co-obligor to
by the end of FY20
the credit facility for an additional year until February 2024, subject to
the financial institutions agreeing to the extension .
(3) For c), an amended amount up to $550 million to be purchasable by
the Company until February 12, 2023 or for a period of 18 months from
the closure of the merger transaction, whichever comes first.
As consideration for (1) and (2), the Company will acquire warrants
that are exercisable for common stock of the merged company at the
price of USD 0.01/ share, as adjusted, when each is completed.
The exchange of WeWork Asia shares at USD 11.60/share was completed in Apr 2020. The exchange of
WeWork China was canceled.
Accounting 10View entire presentation