A floating rate note with an agreed upper limit coupon rate on it. For example, an investor may be promised a LIBOR coupon of 125 basis points over a three-month LIBOR.
Related information about capped note:
- Just Say No To Capped Convertible Notes! - VentureBlog
Sep 6, 2011 ... The capped note may seem reasonable enough at first blush, but the end result can have meaningful disadvantages, particularly for the ...
- Capped Note - Financial Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z. Capped Note. Clear Results. A floating rate instrument with a cap that places a maximum coupon rate on it ...
- What is capped note? definition and meaning
Definition of capped note: A floating rate note with an agreed upper limit coupon rate on it. For example, an investor may be promised a LIBOR coupon of 125 ...
- K9 Ventures » Thoughts on Convertible Notes
Mar 22, 2011 ... In fact, with a capped note, the note holders (at least on paper) are protected from a high valuation, but if the company raises money at a lower ...
- Just Say No To Capped Convertible Notes! - Business Insider
Sep 6, 2011 ... The capped note converts in a future round of financing at the price of ... The capped note may seem reasonable enough at first blush, but the ...
- Convertible Notes vs Preferred Stock - SPRINGMEYER LAW
With a capped note, the investor can convert at the discounted Series-A price or the capped price - whichever is better for the investor. Even an investor that is ...
- Different Types of Floating-Rate Notes - Financial Web
Capped Note This type of FRN minimizes the seller's risk because it puts a limit on the coupon rate. This means that even if the interest rate in the index surges, ...
- Startup Investing: What You Need to Know About Convertible Notes ...
... solve; Whether a price cap, conversion discount, or warrant coverage is more beneficial; Why capped note isn't a panacea; Downsides of the capped structure ...