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"We are pleased to have secured a flexible $70 million credit line from Ares Capital, Kreos Capital and Davidson Technology that is ideally structured for a com
by charlesdm 10y ago
"We are pleased to have secured a flexible $70 million credit line from Ares Capital, Kreos Capital and Davidson Technology that is ideally structured for a company with our strong credit rating and in our stage of growth"..
I don't know how someone defines a strong credit rating, but I wouldn't exactly call Soundcloud a stellar company to lend money to. Unprofitable, anyone?
- otterley 10y agoCredit is the funding of last resort when you can't get equity investors. If Soundcloud goes bankrupt, creditors go to the head of the line to get any leftover assets at liquidation time. Equity holders are last in line, and will almost certainly get nothing.
- rahimnathwani 10y agoCredit isn't always the last resort. Many management teams would love to borrow money at even 15% instead of giving up equity with a 2x liquidation preferences or IRR-based ratchet.