What Is A Note Purchase Agreement

The convertible promissy note is the instrument with which debt arises. A frequent trigger for debt-to-equity conversion is the acquisition of a subsequent round of capital (in an amount of an agreed monetary value) by the company. A convertible bond purchase agreement is one of the many documents used in transactions where convertible bonds are issued. Convertible debentures are a desirable means for companies to raise funds for the following reasons: Pursuant to a membership and contribution note purchase agreement dated October 5, 1998, Liberty Mutual Insurance Company (Liberty) has acquired a contribution note of $220,000 from the Company (Note 8). .