Tech companies are taking out record amounts of convertible debt. Here’s why.
By Rani Molla
June 20, 2018
When tech companies need to raise money, they typically issue stock — either in the public or private markets — or borrow money through debt. But this year, they’ve increasingly opted for a middle ground: Convertible bonds. These let companies raise cash at lower interest rates without immediately issuing stock and diluting their shareholders. And they let the lenders — institutional investors like mutual funds or asset managers — choose to get paid back in cash or stock, depending on how things go.
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