SoftBank is turning to Goldman Sachs to help arrange part of its $5 billion debt package promised to WeWork as part of its bailout, according to Bloomberg. Goldman is arranging a $1.75 billion line of credit, and has already reached out to other banks to gauge their interest in participating.
- Why Goldman Sachs is lending to WeWork… SoftBank will be listed as the borrower in the deal, while WeWork will be a co-borrower.
- Be Smart: Vision Fund II continues to be a Masa pipe dream and was a major reason for the bailout in the first place. The new credit line will replace $1.1 billion in existing debt, and is designed to free up cash that’s being used as collateral in the existing letters of credit.