Convertible Debt Financing: How it Works

Rick Lucash and Ben Hron of McCarter & English will discuss the key elements of convertible debt financing, how it differs from other types of financing, and why it is often the best fundraising mechanism for seed stage rounds.

Topics will include:

• What is the “convertible” in convertible debt
• Conversion mechanics: discounts, caps and thresholds
• Pros and cons of convertible debt
• Convertible debt v. equity financing

This program is part of McCarter & English’s ongoing series at CIC on legal and business topics for entrepreneurs and emerging companies. Programs are held once or twice each month and are open to members of the CIC and their guests, as well as to the greater Boston entrepreneurial community.