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Money Stuff: We Could Really Use Some Money

It blows my mind that it’s not even two months since We Co. filed for an initial public offering targeting a valuation as high as $65 billion, and now here’s this:

Fifteen percent PIK debt! In better times, really not that long ago at all, we talked about WeWork as a clever financial arbitrage, segmenting the market so that it could appeal to debt investors as a boring stable real-estate company while appealing to equity investors as a fast-growing high-multiple tech company. Now, in worse times, it is the opposite: If you invest now, you can get some terrifying debt that lenders don’t want combined with some cursed equity that the stock market doesn’t want. Here, debt investors, take a 15% coupon, why not, also have a bunch of warrants, whatever you like, here, come into our offices, look around, if you see anything that strikes your fancy you can just take that too.