The Wall Street Journal has the details that comes with strict guarantees. If Spotify holds an IPO in 2017, private equity firm TPG and hedge fund Dragoneer will be able to convert the debt into equity at a 20% discount to the share price of the public offering. After a year, that discount increases by 2.5 percentage points every six months, according to The Journal. Spotify also agreed to pay annual interest on the debt that starts at 5% and increases by 1 percentage point every six months until the company goes public, or until it hits 10%. TPG and Dragoneer are also permitted to cash out their shares as soon as 90 days after an IPO, instead of the 180-day period “lockup” employees and other shareholders are forced to wait before selling shares.