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Convertible debt as to not dilute the share pool. As is typical, there are also financial incentives to VPs to make the IPO happen in time. It would be very int
by resharker 10y ago
Convertible debt as to not dilute the share pool. As is typical, there are also financial incentives to VPs to make the IPO happen in time. It would be very interesting to know if the lenders of the 1B anticipated this and are planning to immediately offload their highly discounted stock before shredding the company to pieces for their 1B. Might be hard, considering the massive liability they're taking on with the new New York office.
- hkmurakami 10y agoEven in such a scenario the $1B would be offloaded to investment banks during the road show who will in turn off load it at the IPO price to its client base. They won't dump it into the open market on opening day.