WeWork burnt through $3.2bn in 2020, as per documents related to a $1bn investment pitch to institutional investors seen by the FT. Despite the pandemic leading to a shutdown of its co-working spaces globally for major parts of last year, reported losses were lower than 2019’s $3.5bn loss as the company cut on capex drastically to just $49mn in 2020 vs. $2.2bn in 2019. Further, WeWork reported occupancy rates of 47% vs. 72% prior to the pandemic. The documents titled “Projet Windmill” shows WeWork’s plan to go public at a valuation of $9bn – this includes debt, through a merger with a SPAC, in discussions with BowX Acquisition Corp. WeWork projects that it would hit 90% occupancy by the end of next year and that revenues would top $7bn by 2024 from $3.2bn in 2020. Earlier this month, WeWork’s backers SoftBank closed a settlement with founder Neumann under which it would pay ~$1.6bn to buy shares from WeWork’s early investors.

WeWork’s 7.875% 2025s were flat at 91.5, yielding 10.5%

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