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 Changing Convertible Note Interest Rate

Jeffrey Basch's profile image
Jeffrey Basch posted 02-21-2024 16:25

We have convertible notes that accrue simple interest. The interest rate is changing on the notes at a given time (e.g.: annual reset based upon benchmark). I need to figure out how to change the interest rate moving forward from a given date while maintaining the same principal and earlier accrued interest so that the simple interest rate is calculated correctly at the new rate.  Carta support has not provided any solution, yet. They say if I use the modify function, it will change the interest rate from the issuance date, not the modification date. Anyone have any suggestions and/or face the same issue?