It's debt but it's pretty clearly meant to convert into equity not be re-paid. | Hacker News

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		jalonso510 on March 30, 2016 \| parent \| context \| favorite \| on: Spotify raises $1B in debt with devilish terms to ... It's debt but it's pretty clearly meant to convert into equity not be re-paid.

toomuchtodo on March 30, 2016 [–]

Spotify will never be worth enough for that converted equity to be worth the cost.

jalonso510 on March 30, 2016 | [–]

Well if they ever IPO at all, it sounds like these guys get 20% off the IPO price so have a decent gain built in no matter what Spotify is worth at that time. Assuming the description in the article is correct.

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