Flexible workspace aggregator startup, WeWorks Cos, is looking to arrange a $2.7 billion credit line with a number of banks in preparation for its planned IPO.
JPMorgan Chase & Co. is leading the potential financing, said the people, who asked not to be identified because the plans aren’t public. Representatives for the bank and WeWork declined to comment.
WeWork, which rents office space and desks to workers around the world, said in April it had filed paperwork confidentially with the U.S. Securities and Exchange Commission for an IPO. It could be the year’s biggest offering after Uber Technologies Inc. WeWork’s largest backers include SoftBank Group Corp., which earlier this year decided against taking a controlling stake.
Securing a credit line from Wall Street often precedes an IPO. Companies going public routinely reward banks that make big credit commitments with roles in their IPOs, with lenders sometimes offering better terms on the financing in return.
WeWork was founded in 2010 and rose to become one of the world’s most valuable startups. The New York-based company has ambitions to go beyond the office with nascent businesses in apartment rentals and elementary schools. It took a symbolic step toward encapsulating those goals in January by rebranding itself as We Co., though it hasn’t reincorporated under the new moniker.
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