Modupe Gbadeyanka
A $1.5 billion funding package has been received by the We Company (WeWork) from SoftBank Group Corporation, which was an acceleration of the existing payment obligation, approved by WeWork’s shareholders at $11.60 per share.
In connection with the completion of the $1.5 billion funding from SoftBank, several governance changes became effective today, including the reconstitution of the WeWork Board of Directors.
As previously announced, the $1.5 billion payment and governance changes are part of an agreement with WeWork that has now been approved by WeWork shareholders, under which SoftBank will provide significant funding to the Company. The financing package includes $5 billion in new debt financing.
“The $1.5 billion in funding that WeWork received today from SoftBank positions the Company for the future and underlines Softbank’s steadfast belief in the business,” said Marcelo Claure, Executive Chairman of the Board of Directors of WeWork. “WeWork is leading the innovation of a multi-trillion dollar industry, and this financing package enables the company to accelerate the path to profitability and free cash flow generation. I want to thank management, the entire WeWork team, our members, landlords and communities around the world for their continued support and dedication.”
Claure added, “Softbank’s high-conviction investment comes with operational support as well as improved governance. With our expanded Board seats we anticipate appointing two additional directors in the near future.”
Pursuant to the previously announced agreement with WeWork and completion of the accelerated $1.5 billion payment commitment, several governance changes are effective immediately.
The board of WeWork has been reconstituted to include 10 members, initially consisting of five directors designated by either SoftBank or SoftBank Vision Fund, including Ron Fisher, Marcelo Claure, Steven Langman, and two others to be named at a later date.
It also has two directors designated by existing investors Benchmark Capital and Hony Capital, who are Bruce Dunlevie and John Zhao, respectively; and two directors not affiliated with WeWork, who are Jeff Sine and Mark Schwartz; with one director from the Special Committee of the Board, Lew Frankfort.
Other governance changes, which became effective were Marcelo Claure today has been appointed Executive Chairman of the Board; and Adam Neumann has become a Board observer, and the Board has received voting control over his shares.
