Adam Neumann could also be out of the each day stream of WeWork, however he seemingly stays prime of thoughts to among the firm’s bankers.
According to a brand new Business Insider piece, Neumann is working with JPMorgan, UBS, and Credit Suisse to think about new phrases for a $500 million mortgage that he took out earlier than WeWork filed to go public, and from which Neumann has already drawn down $380 million. Since he can now not pay the mortgage with proceeds from promoting WeWork shares publicly (it yanked its S-1 submitting earlier this week), he could must put up a few of his properties or different property as collateral for the mortgage, in response to considered one of BI’s sources.
“No terms have been set,” a spokeswoman for Neumann tells the outlet.
Per earlier studies, Neumann has loads to dump if it involves it, having acquired quite a few residential and industrial properties through the years.
Among his reported investments is a $10.5 million Greenwich Village townhouse; a farm in Westchester, New York; a house within the Hamptons the place he reportedly weathered the storm along with his household forward of resigning as CEO final week; and a $21 million, 13,000-square-foot home within the Bay Area with a guitar-shaped room.
According to an earlier WSJ report, Neumann has additionally purchased a number of industrial properties via investor teams that he had leased again, in some instances, to WeWork.
WeWork, and Neumann, have each loved a detailed relationship with JPMorgan lately. As not too long ago reported within the NYTimes, JPMorgan “lent Mr. Neumann money personally (with his inflated shares as collateral), provided equity and debt for the company, served as a corporate adviser for the I.P.O. and secured nearly $6 billion in financing as part of the now scotched offering.”
