He does make a good point about the rate differences but my understanding is that this might come in handy once the economy starts to tank. There are a lot of

He does make a good point about the rate differences but my understanding is that this might come in handy once the economy starts to tank. There are a lot of companies whose valuation are not worth their price. Sooner or later they will need to raise money. They wont be able to approach debt markets as that means fixed repayments. Sure 7% for IPO will be always better but if they don't want to answer all kinds of questions about their business in SEC filings, this might be the deal for them. Or cases where in the startup founders are not that versed in IPO filings and fees.