$ 1 billion convertible bond financing made by Spotify,
Apple Music-
Apple Apple Music,Spotify full resistance, the convertible bonds ' financing-IT information
According to the Wall Street Journal, Spotify, in a very unfavourable terms by TPG, Dragoneer and Goldman Sachs clients completed a $ 1 billion debt financing, hope against Apple Music.
Spotify has confirmed the news. TPG also said that this round of financing provided to further strengthen the leading position for Spotify's strategic resources. Proceeds will be used for this round of financing growth and marketing. Through debt financing, Spotify does not have to worry about the potential for "discount financing" and sending negative signals. June 2015 the company valued at $ 8.5 billion.
Spotify can also provide this financing acquisitions. Sluggish as SoundCloud and Pandora, Spotify could attract more independent music or radio listeners. In addition, if you can have funds to buy Pandora or SoundCloud, Spotify can still hold the upper hand.
However, if Spotify not so good, some provisions in the financing agreements also may make the company suffered huge losses. No matter what Spotify the final IPO price, TPG and Dragoneer conversion price will be 20% off. If Spotify not IPO in the coming year, each exceed 6 months, discounts will increase 2.5%.
Spotify needs to 5% per cent convertible bonds pay annual interest rate, IPO plans beyond 6 months, the interest rate increase of 1%, up to 10%. In addition, TPG and Dragoneer Spotify selling stock in the IPO after 90 days, while internal employees and other investors are banned for a period of 180 days.
Apple Music and if Spotify's poor performance against, the interests of the company's employees will be damaged because the deal late for investors with lower stock prices and looser restrictions on the sale. In addition, the only success of Spotify, valuable employee stock ownership, and it now needed the money to succeed.
Worth noting is that if Spotify can increase valuations, and the IPO goes well, then the above discounts and sale terms will also be adjusted in advance. In other words, if we can achieve this goal, Spotify's current financing terms than after rising valuations of a financing deal.
Why Spotify agreed to the terms so bad? The reason is that the company's competitors are the Apple, this is a company that funds the most abundant of all time. Streaming media has become an irreversible trend, Spotify is sparing no effort to compete with Apple. As long as they can attract users at faster speeds, they can ride on the network effects of long-term profit. Spotify through adverse terms of financing is not surprising.
People familiar with the matter said, Spotify has 570 million euros in the bank account, so the financing need is not urgent. Therefore, the company took this way of financing, it may indicate that they are confident this year.
Spotify发10亿美元可转债融资，全力抵抗
苹果Apple Music -
Apple Music,Spotify,可转债融资 - IT资讯
据《华尔街日报》报道，Spotify以十分不利的条款通过TPG、Dragoneer和高盛的客户完成了10亿美元可转债融资，希望对抗Apple Music。
Spotify已经证实了这条消息。TPG也表示，此轮融资为Spotify提供了进一步加强领先地位的战略资源。本轮融资所得将用于规模增长和市场营销。通过可转债融资，Spotify就不必担心因为潜在的「折价融资」而释放不利信号。该公司2015年6月的估值达到85亿美元。
这笔融资还可以为Spotify提供收购机会。随着SoundCloud和Pandora表现低迷，Spotify可能吸引更多独立音乐或电台听众。另外，如果能有资金收购Pandora或SoundCloud，还可以令Spotify占据上风。
不过，倘若Spotify表现不那么优秀，融资协议中的一些条款也可能令该公司蒙受巨额损失。无论Spotify最终的IPO价格是多少，TPG和Dragoneer的转股价格都将获得20%的折扣。倘若Spotify无法在未来一年内IPO，每超出6个月时间，折扣都将增加2.5%。
Spotify还需要为这笔可转债支付5%的年利率，IPO计划每超出6个月，利率增加1%，上限为10%。另外，TPG和Dragoneer可以在Spotify IPO 90天后抛售股票，而内部员工和其他投资者的禁售期为180天。
倘若Spotify在与Apple Music的对抗中表现不佳，该公司的员工利益就将受损，因为此次交易为后期投资者提供了更低的股价和更宽松的出售限制。另外，只有Spotify取得成功，员工持股才有价值，而该公司现在需要借助这笔资金来走向成功。
值得注意的是，倘若Spotify能够大幅提升估值，而IPO也进展顺利，那么上述折扣和提前出售条款也将有所调整。也就是说，倘若能够实现这一目标，Spotify目前的融资条款仍然比之后估值上升后再进行融资更加划算。
Spotify为何同意如此不利的条款？原因在于该公司的竞争对手是苹果，这是一家有史以来资金最为充裕的公司。流媒体音乐已经成为一股不可逆转的趋势，所以Spotify正在不遗余力地与苹果展开竞争。只要能够以更快地速度吸引用户，便可借助网络效应实现长期的盈利。所以Spotify急于通过不利条款融资也就不足为奇。
知情人士表示，Spotify银行账户上仍有5.7亿欧元，所以融资需求并不紧迫。因此，该公司之所以采取这种融资方式，可能表明他们对今年的表现很有信心。