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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 th
by hkmurakami 11y ago
>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)
- nissimk 11y agoThey can probably pay in kind and screw the investors more. Better than paying cash.
- jamesdwilson 11y agoelaborate please? this is not my area of expertise.
- nissimk 11y agoIn 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.