This is no Aprils Fools…
This is another case of unicorn slaying. Lets see how this slay unfolds. Recently Spotify issued a $1B convertible debt from TPG, Dragoneer, and Goldman Sachs clients. We will call them the VC mob (VCM).
- VCM can convert the debt to equity at a 20% discount of the IPO price. (print money baby!!)
- If no IPO within 1 year, the carnage, oops, I mean the discount increases 2.5% and the interest on the debt (5%) will increases 1% maxed out to 10% every six months there after.
- VCM can sell their shares 90 days after IPO. Spotify employees are locked up for 180 days zombiefied.
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