WeWork Inc (NYSE:WE) has reached a deal to convert about $1 billion worth of major investor SoftBank Group Corp's unsecured notes into equity as the coworking company moves to reorganize its finances.
The move had been expected, and shares of the company climbed 13% Thursday in anticipation. The stock is up another 1% Friday morning to $0.99.
For WeWork, which has seen its share price crater 83% last year and another 40% thus far in 2023, the news of the restructuring is welcome.
That said, the overarching trends remain tough.
The company issued disappointing revenue guidance when it reported earnings last month, suggesting it’s feeling the crunch of big companies making major layoffs and thus using less office space.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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