WeWork reaches deal to convert $1 billion of SoftBank’s debt to equity

© Reuters. FILE PHOTO: The WeWork logo is seen on a cup at a WeWork office in Beijing, China August 2, 2019. REUTERS/Jason Lee

(Reuters) -WeWork Inc said on Friday it had reached a deal to convert about $1 billion of key investor SoftBank Group Corp’s unsecured notes into equity, in an effort to restructure its finances.

The company, which offers workstations, private offices and customized floors, had enjoyed a pandemic-driven shift to flexible work outside traditional offices, but is now gearing up for a potential fallout from a likely economic downturn.

WeWork was in talks with investors to restructure its outstanding debt of more than $3 billion and raise more cash.