Hacker News Reader

Anyone else notice the Adam Newman style loans to the founder in the footnotes?

" (ii) cash proceeds to our Founder in an amount of $125 million, (iii) a loan to an entity controlled by our Founder in an amount of $119.0 million, as described further below under “—Loan to our Founder,” (iv) certain transaction expenses and (v) the contribution of $87.0 million to the balance sheet of the surviving company of the Merger."

View on HN

Can't speak to this specific case, but often this is done to help founders exercise shares/pay taxes on gains. Still a kind favor, but it's usually not a Nuemann-esque private jet purchase.

The loan was collateralized by shares, not used to purchase shares. Also the founder got a sweetheart deal on the interest rate.

“ The loan [to our founder] accrues interest at a rate per annum equal to the long-term federal rate established pursuant to Section 1274 of the U.S. Internal Revenue Code as in effect on November 8, 2019 (which was equal to 1.93% per annum), is secured by our Founder’s Class A units in Bumble Holdings and any net cash proceeds of such pledged units to the extent received by Beehive Holdings III, LP, and allows for repayment at any time”

Unrelated, but Beehive Holdings is a great holding company name for Bumble.

Reply on news.ycombinator.com