American office space manager WeWork is seeking to raise funds anywhere between $3 billion to $4 billion in debt before it goes public, according to media reports. The decision comes in an effort to boost investor confidence.
The Wall Street Journal reported that the debt facility could grow as much as $10 billion in the coming years. However, the debt offering will stand separate from the funds that WeWork is expected to raise in its initial public offering.
Media reports said that the company has met with the chief executives of Goldman Sachs and JPMorgan in order to discuss the debt offering. It has already filed paperwork for its initial public offering.
WeWork was rebranded as the We Company this year acting as an umbrella brand for WeWork, WeLive and WeGrow. “We’re driven by the impact we know we can have when we all work together with a shared intention,” Co-founder Adam Neumann said. Earlier this year the company was valued at $47 billion in a private fundraising round and had plans to raise investment from Softbank.
Currently it operates in 425 locations in 27 countries. India is one of WeWork’s fastest growing markets with 35,000 seats in more than 20 shared locations in the 18 months since the launch. It hosts global corporations such as Microsoft and Amazon in Bangalore, and Spotify and Bumble in Mumbai.
Buildcon controls WeWork India. Last month, WeWork’s plan to take the majority control of its India affiliate will benefit the company while preparing for its initial public offering.