“D” is for “desperate.”  And “debt.”  According to the Wall Street Journal:

Swedish music-streaming company Spotify AB has scheduled a series of investor meetings in an effort to raise about half a billion dollars through a convertible bond issue, a person familiar with the matter said Wednesday.

Spotify is eager to have financial firepower at hand should consolidation opportunities arise in the industry, according to the person. The issue won’t necessarily be a prelude to a stock-market listing of the privately held company, the person said.

The Financial Times tell us:

Swedish newspaper Svenska Dagbladet, which first reported the planned funding round, said that the loans would pay an annual interest rate of 4 per cent. In addition, they would convert into equity at a 17.5 per cent discount to Spotify’s share price if the company goes public in the next year.

This financial structure would guarantee lenders hefty…