westhx I guess it is commiserate with risk. The mez basically...

westhx I guess it is commiserate with risk. The mez basically carries the risk of equity given that all the secured lenders would chew up any value if the project came apart.

I hope they pushed for $10M at 20cents rather than this mezzanine crap. It gives us no benefit at all if convertible at 20cents - at least if it was convertible at a discount to market price you could argue that the potential upside in SP overides the 11% interest cost, as it looks it just seems like an expensive way to issue shares at 20 cents...(plus of course any interest which as per form will be converted into equity also).