Key Events
👉 WeWork set to emerge from Chapter 11 bankruptcy
WeWork has reached an agreement with its senior creditors to exit from bankruptcy after filing in November 2023.
On Monday, the company and its major financial backers finalized a settlement plan that involves a cash infusion of $450M funded by SoftBank (a key backer behind WeWork’s once $47B valuation). This settlement will transfer WeWork’s equity to senior creditors and cancel out $4B in previous debt.
How is the $4B of debt just wiped out?
In a Chapter 11 restructuring process, previous debt is removed or reduced through a plan of reorganization (POR) approved by US bankruptcy court. This plan involves negotiations with creditors to agree on terms to …
(i) raise new money – through senior forms of debt financing
(ii) delever – reduce existing costly debt
(iii) extend maturities – extend repayment periods
(iv) PIK toggle – non-cash interest
(v) equitize debt – convert debt into equity.
The goal is to make the company’s debt load manageable so it can continue to operate while meeting interest payments and any debt covenants.
👉 Rise in Q1 labor costs fuel further inflation concerns
U.S. labor costs rose more than expected in Q1 2024, with a 1.2% increase in the Employment Cost Index due to higher wages and benefits.
This surge complicates the Federal Reserve’s inflation management, potentially delaying anticipated rate cuts. While wage gains signal robust economic activity, they pose challenges for inflation control, given consumers have more to spend.
👉 NBC Universal prepares $2.5B offer for NBA media rights
Comcast’s NBCUniversal is preparing a $2.5B annual bid to broadcast regular and postseason games on both the NBC network and its Peacock streaming service.
Sports rights are valuable assets for both traditional media companies and streaming platforms who want to attract and maintain customers. With these contracts, media companies are guaranteed consistent viewership and subscription retention, strengthening the top-line.
Mergers & Acquisitions
Ono Pharmaceutic will acquire cancer drugmaker Deciphera Pharmaceuticals for $2.4B.
Private Equity
Blackstone agreed to acquire Hipgnosis Songs Fund in a $1.6B cash deal.
Initial Public Offerings
US cruise operator Viking seeks $1.33B in IPO funding at a $10.8B valuation.
Venture Capital
Island, a provider of secure enterprise browsers, raised $175 million series D at a $3B valuation.
