WeWork Cos. is in talks with banks about arranging a $2.75billion credit line ahead of a planned initial public offering(IPO), according to people with knowledge of the matter.

JPMorgan Chase & Co. is leading the potential financing,said the people, who asked not to be identified because the plansaren't public. Representatives for the bank and WeWork declined tocomment.

WeWork, which rents office space and desks to workers around theworld, said in April it had filed paperwork confidentially with theU.S. Securities and Exchange Commission (SEC) for an IPO. It couldbe the year's biggest offering after Uber Technologies Inc.WeWork's largest backers include SoftBank Group Corp., whichearlier this year decided against taking a controlling stake.

Securing a credit line from Wall Street often precedes an IPO.Companies going public routinely reward banks that make big creditcommitments with roles in their IPOs, with lenders sometimesoffering better terms on the financing in return.

WeWork was founded in 2010 and rose to become one of the world'smost valuable startups. The New York-based company has ambitions togo beyond the office with nascent businesses in apartment rentalsand elementary schools. It took a symbolic step towardencapsulating those goals in January by rebranding itself as WeCo., though it hasn't reincorporated under the new moniker.

What Bloomberg Intelligence Says

“WeWork needs access to cash to secure, design, and lease officespace to sustain robust revenue growth. The company had $6 billionin cash as of early 2019 after burning through $2.3 billion in2018.”  —Jeffrey Langbaum, REITs analyst

In 2014, WeWork obtained a $650 million revolver led by JPMorganthat expires in late 2020, according to data compiled by Bloomberg.The company's junk-rated bonds, priced in 2018 and due in 2025,closed at $93.50 on Tuesday, a decline from a peak of $99.63earlier this month

WeWork said earlier this month that itsloss narrowed slightly to $264 million in the first quarter. ItsIPO will test public investors' appetite for another tech-infused,cash-burning business after Uber's disappointing debut.

—With assistance from Ellen Huet.

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