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From the article: >WeWork is issuing seven-year, senior unsecured bonds This means that in case of bankruptcy the holders of these bonds will probably be the
by josu 8y ago
From the article:
>WeWork is issuing seven-year, senior unsecured bonds
This means that in case of bankruptcy the holders of these bonds will probably be the last ones to get paid back, if they ever do. This increased risk is usually compensated by a higher yield than regular bonds.
EDIT: As commenters point out, they wouldn't be the _last_: "In the event the issuer goes bankrupt, senior debt theoretically must be repaid before other creditors receive any payment."
https://en.wikipedia.org/wiki/Senior_debt https://en.wikipedia.org/wiki/Senior_debt
- rahimnathwani 8y agoWhy would they be the last? In the case of bankruptcy these will be paid back before any money goes to junior unsecured bonds (if any) and before shareholders.
- soVeryTired 8y agoI'd imagine they have a lot of secured debt in the form of commercial mortgages. AFAIK they own some of their property rather than leasing it.
- rahimnathwani 8y agoProbably. But the bond holders wouldn't be _last_ as the OP suggested.