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Anyone else notice the Adam Newman style loans to the founder in the footnotes? " (ii) cash proceeds to our Founder in an amount of $125 million, (iii) a loan
by nknealk 6y ago
Anyone else notice the Adam Newman style loans to the founder in the footnotes?
" (ii) cash proceeds to our Founder in an amount of $125 million, (iii) a loan to an entity controlled by our Founder in an amount of $119.0 million, as described further below under “—Loan to our Founder,” (iv) certain transaction expenses and (v) the contribution of $87.0 million to the balance sheet of the surviving company of the Merger."
- kippinitreal 6y agoCan't speak to this specific case, but often this is done to help founders exercise shares/pay taxes on gains. Still a kind favor, but it's usually not a Nuemann-esque private jet purchase.
- nknealk 6y agoThe loan was collateralized by shares, not used to purchase shares. Also the founder got a sweetheart deal on the interest rate. “ The loan [to our founder] accrues interest at a rate per annum equal to the long-term federal rate established pursuant to Section 1274 of the U.S. Internal Revenue Code as in effect on November 8, 2019 (which was equal to 1.93% per annum), is secured by our Founder’s Class A units in Bumble Holdings and any net cash proceeds of such pledged units to the extent received by Beehive Holdings III, LP, and allows for repayment at any time”
- Robelius 6y agoUnrelated, but Beehive Holdings is a great holding company name for Bumble.