Triangle Business Journal

Cree has the option to pay the notes in either cash, stock or a combination of the two – a feature attorney Jim Verdonik says, “Minimizes the risk of default by Cree.”
Verdonik, who is not representing Cree, says institutional debt offerings like this generally have lower interest rates and fewer financial covenants than the bank debt the company is seeking to replace.
And they are generally for a longer term. “This may be a sign that Cree believes interest rates will increase in the future,” Verdonik says.

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