Swedish music streaming juggernaut Spotify is seeking to raise $500 million from investors to bankroll future growth through convertible notes, Swedish publication Svenska Dagbladet reported on Wednesday afternoon (via Music Ally and Reuters).

The report, which is based on confidential bank documents unearthed by the paper's reporters, suggests that Spotify will pay a 4% interest on the loans, which will later convert into shares.

Svenska Dagbladet reports that note holders would get a (pretty hefty) discount of 17.5% against the share price in an IPO if the company should float its shares within a year. After one year, the discount rate would increase by 2.5% every six months, the paper added.

Spotify has raised more than $1 billion since its founding about a decade ago, adding roughly half of that in a funding round closed last year alone at a $8.5 billion valuation. Its rival Deezer just added €100 million to its coffers after postponing a planned IPO in 2015.

Also read:

Spotify acquires Dublin-based music discovery startup Soundwave

Spotify hit with class action lawsuit seeking at least $150 million in damages

An IPO isn’t the only possible exit for Spotify. Don’t believe me? Google it…

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