What you're saying is possible. But given the size of the loan book and the amount drawn, I don't think it applies. What it is likely to be is an additional financial covenant over and above the first loss. Hopefully it is an absolute amount not scaling with the book. Worst case would be something that ties in the amount of debt and the valuation of the company. In any case, we should ask as it definitely has a direct relationship with the ability to grow the lending revenues. And given the slow growth, implied by the number of options issued to the debt funder, it is difficult to not jump to a [negative] conclusion.
SPX Price at posting:
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