Benzinga | Dec 6, 2021 07:30AM EST

WeWork Provides November Business Update And Announces Agreement To Extend Secured Credit Commitments

WeWork Inc. (NYSE:WE) ("WeWork"), one of the leading global flexible space providers, today provided a business update of key operational metrics for November 2021 and announced agreements to extend its secured credit commitments, which resulted in an extension of $1.75 billion of total liquidity from February 2023 to February 2024:

November Business Update

Following positive momentum seen in the second and third quarter of 2021, WeWork saw continued growth across key metrics in October and November, including memberships, physical occupancy, and desk sales.

Preliminary November highlights include:

* WeWork's global real estate portfolio included 756 locations across 38 countries, supporting approximately 913,000 workstations and 577,000 physical memberships.

* WeWork's consolidated real estate portfolio included 624 locations across 33 countries, supporting approximately 747,000 workstations and 458,000 physical memberships.

* Preliminary consolidated physical occupancy rate was 61% in November, a two percentage point improvement from 59% physical occupancy in October. Including incremental net memberships that are contracted to move in, preliminary physical occupancy would increase to 63% in November, a two percentage point improvement from 61% in October.

* Preliminary consolidated gross desk sales were 55,000 in November 2021, equating to 3.3 million square feet sold. This marks an increase from 45,000 gross desks sold in October 2021, equating to approximately 2.7 million square feet. Preliminary consolidated new desk sales were 30,000 in November 2021, an increase from 25,000 in October 2021.

* Preliminary All Access memberships increased to 41,000 in November 2021, up from 38,000 in October 2021. These All Access memberships represent an additional five percentage points of occupancy.

* Enterprise members accounted for 47% of total physical memberships.

* Overall average commitment length stood at 20 months.

Letter of Credit Facility and Senior Secured Notes

WeWork and SoftBank Group Corp. ("SoftBank") have agreed to extend WeWork's commitments for a total of $1.75 billion of liquidity from February 2023 to February 2024 through: i) an amendment to WeWork's existing letter of credit facility pursuant to which its maturity date was extended from February 10, 2023 to February 9, 2024 with total commitments of $1.25 billion as of February 10, 2023 through February 9, 2024; and ii) an agreement to extend the $500 million senior secured notes commitment from Starbright WW LP, a wholly-owned subsidiary of SoftBank, from February 2023 to February 2024.