WeWork's bonds plunged to a record low on Monday after the company requested to withdraw its S-1 filing.
The coworking company's 7.875% notes maturing in 2025 plummeted to 86.39 cents on the dollar following WeWork's announcement on Monday morning.
"We have decided to postpone our IPO to focus on our core business, the fundamentals of which remain strong," Newly-appointed co-CEOs Artie Minson and Sebastian Gunningham said. "We have every intention to operate WeWork as a public company and look forward to revisiting the public equity markets in the future."
The steep sell-off of WeWork's bonds comes after S&P Global slashed the company's credit rating deeper in junk territory last Thursday. The rating agency lowered WeWork's credit status to "B-" from "B" and changed its outlook for the company negative from stable.
The company has faced a barrage of challenges in the recent weeks leading up to its failed IPO. WeWork cofounder Adam Neumann stepped down as CEO last week following concerns over his leaderships and the company's governance structure.
WeWork's bonds rallied to an all-time high of 104.965 cents on the dollar in August after the company said in its IPO filing that it paid off a portion of the bonds and was planning to raise an additional $6 billion in debt funding contingent upon a successful public offering by the end of 2019.