October 15, 2019 / 6:40 AM / a month ago

WeWork prefers JPMorgan's financing package over SoftBank's control: Bloomberg

The WeWork logo is displayed outside of a co-working space in New York City, New York U.S., January 8, 2019. REUTERS/Brendan McDermid/Files

(Reuters) - Shared office space company WeWork prefers the option of a near $5 billion financing package led by JPMorgan Chase & Co (JPM.N) to selling a controlling stake to Japan’s SoftBank Group Corp (9984.T), Bloomberg reported late on Monday.

The debt package may include at least $2 billion of unsecured notes with 15% coupon, according to Bloomberg.

SoftBank has prepared a financing package that would give it control over the shared office space company, a person familiar with the matter told Reuters on Sunday.

WeWork and JPMorgan were negotiating a debt deal after the company’s planned initial public offering was tabled last month as investor concerns grew about its valuation and its business model, Reuters reported earlier this month.

SoftBank, WeWork and JPMorgan did not immediately respond to a Reuters request for comment.

Reporting by Kanishka Singh in Bengaluru; Editing by Muralikumar Anantharaman

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