May 3, 2016
Partner Michael A. Adelstein was quoted in The Pipes Report article “Convertible Rates Soar as High as 25%.” The article examines the reasons why convertible and straight debt security private-investment-in-public-equity financing are generating more capital than the same kind of deals did in the first months of last year. The overall pace of deal flow this year, debt, convertible debt and convertible preferred equity PIPEs raised $7.82 billion. In some cases, however, high rates could potentially cause deals to break usury laws. “While usury law can be an issue, investors and issuers can avoid most usury concerns and parties should always select the governing law of securities instruments with care, said Mr. Adelstein.