Written by: Parker Zangoei, Anthony Taranto, Martin Goodlett
With the availability of venture capital still constrained, and valuations yet to recover from their recent decline, convertible notes have become an increasingly attractive financing vehicle for many emerging growth companies. This alert discusses the protections venture lenders typically require to accommodate convertible debt in a borrower’s capital structure, as well as the flexibility some later-stage borrowers may request in their secured credit facilities.
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