WeWork's bankers are pitching investors on what would be one of the riskiest junk-debt offerings in recent years, and potentially giving the venture's top private shareholders a final chance to avoid having their stakes severely diluted.

A roughly $5 billion financing package led by JPMorgan Chase & Co. is said to be the company's preferred option, rather than selling a controlling stake in itself to SoftBank Group Corp., according to people with knowledge of the matter.

The structure and terms under discussion may change depending on investor appetite. Notably, the financing could include at least $2 billion of unsecured payment-in-kind notes with an unusually hefty 15 percent coupon, one source said.