WeWork Bonds Trade Like CCC on SoftBank, Adding to Rating Puzzle
- Company’s yields now in line with averages for CCC rated bonds
- Notes graded BB- by Fitch, B+ at S&P and Moody’s has no rating
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SoftBank Group Corp.’s decision to cut its investment in WeWork Cos. has the company’s bonds trading in line with the lowest rating level of junk debt.
WeWork’s 7.875 percent notes due in 2025 are now trading at a yield of about 10.88 percent, in line with CCC rated bonds. They dropped as much as 3 cents on the dollar to 86 cents on Monday afternoon in New York, according to Trace bond price data.