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Contract Terms Convertible Notes

Fenwick & West LLP

Convertible Notes & SAFEs: Still Popular, But Terms Are Tightening

Fenwick & West LLP on

Convertible instruments held steady in Q1 2025, but the terms are shifting in favor of investors. Interest rates on convertible notes rose by 200 to 300 basis points, and discount rates climbed as high as 10.5 percentage...more

Farrell Fritz, P.C.

Beyond the Discount: Why Maturity Terms Matter in Convertible Notes

Farrell Fritz, P.C. on

When negotiating convertible notes, parties typically focus on the terms of conversion upon an equity financing, most notably the discount and valuation cap.  This is understandable inasmuch as the not-so-hidden secret of...more

Gray Reed

Could Corporate Convertible Loans be Subject to Criminal Usury Laws in New York?

Gray Reed on

In Adar Bays, LLC v. GeneSYS ID, Inc., the New York Court of Appeals (the “Court”) held that the conversion price in a convertible option could be classified as interest thereby potentially falling under the territory of New...more

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