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>Spotify also has to pay 5% annual interest on the debt, and 1% more every six months up to a total of 10%.

Fwiw I'm parsing this as the interest to service the debt topping out at 10% rather than 15% (which imo is a pretty big difference)




They can probably pay in kind and screw the investors more. Better than paying cash.


elaborate please? this is not my area of expertise.


In kind interest payments let the lender increase the principal balance instead of actually paying interest. In this case it would be like issuing 10% more equity per year instead of paying the 10% in cash. It wasn't mentioned in the article if they have that option, but it wouldn't surprise me.




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