Convertible / Promissory Note Returns Excel Calculator

Calculate the different scenarios for a convertible / promissory note and the outcomes for the investor / issuer

by Michael Hatley, CEng MBA
Procurement Manager at McDermott International Inc.Follow

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Description
This file is designed to provide guidance on different scenarios when issuing a convertible / promissory note.

Three scenarios are provided in the first sheet:
1) Discount, with no cap
2) Discount, with a cap
3) No discount, with a cap

The scenarios highlight the impact of the different sweeteners that may be offered. The potential of interest on the loan amount is also considered for the three scenarios.

The second sheet shows the change in ownership potential at lower and higher values for the pre-money valuation of the company, for the above scenarios.

This business tool includes
1 Excel file with 2 sheets