Adam Neumann could also be out of the every day move of WeWork, however he seemingly stays high of thoughts to among the firm’s bankers.
In accordance with a new Business Insider piece, Neumann is working with JPMorgan, UBS, and Credit score Suisse to contemplate new phrases for a $500 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 earlier this week), he could must put up a few of his properties or different belongings as collateral for the mortgage, based on one in every of BI’s sources.
“No phrases have been set,” a spokeswoman for Neumann tells the outlet.
Per earlier stories, Neumann has lots to dump if it involves it, having acquired quite a few residential and business properties through the years.
Amongst 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 together with his household forward of resigning as CEO final week; and a $21 million, 13,000-square-foot home within the Bay Space with a guitar-shaped room.
In accordance with an earlier WSJ report, Neumann has additionally purchased a number of properties by means of investor teams that he had leased again, in some instances, to WeWork.
WeWork, and Neumann, have each loved an in depth relationship with JPMorgan lately. As recently reported within the NYTimes, JPMorgan “lent Mr. Neumann cash personally (together with his inflated shares as collateral), supplied fairness and debt for the corporate, served as a company adviser for the I.P.O. and secured almost $6 billion in financing as a part of the now scotched providing.”