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[Investar]

http://www.sec.gov/Archives/edgar/data/1416265/000141626510000048/0001416265-10-000048-index.htm

On February 1, 2010, Prosper Marketplace, Inc. (“Prosper”) entered into a Note and Warrant Purchase Agreement with certain of its existing investors, pursuant to which, Prosper issued and sold to such investors a series of Convertible Promissory Notes in the aggregate principal amount of $2,000,000. All principal and accrued interest under the Notes are due in a single payment on April 1, 2010....

[bamalucky]

So they bought a 2 month lifeline using  the current Prosper lenders notes as collateral.

The ship is sinking

[xraider]

Sure looks like it to me.  I'd sure want warrants for Prosper stock at penny stock levels...

[Mark12547]

Nominated for Lobby. Investar, is that ok with you?

I think a 2-month lifeline would be of interest to the Lenders.

[Mtnchick]

Nominated for Lobby. Investar, is that ok with you?

I think a 2-month lifeline would be of interest to the Lenders.

2nd if needed

[112233]

using  the current Prosper lenders notes as collateral.

that part isnt clear. my interpretation is that they sold several notes to the several investors with their own name on it.

looks like they are arranging, or trying to arrange a "preferred stock financing for an aggregate purchase price of $5,000,000 or more", and this is a bridge

[bamalucky]

using  the current Prosper lenders notes as collateral.

that part isnt clear. my interpretation is that they sold several notes to the several investors with their own name on it.

looks like they are arranging, or trying to arrange a "preferred stock financing for an aggregate purchase price of $5,000,000 or more", and this is a bridge

The notes are collateral anyway because they belong to Prosper. The notes are assets that belong to PMI & proceeds would be used to settle with creditors.

[Staneslav]

a

[Investar]

Nominated for Lobby. Investar, is that ok with you?

I think a 2-month lifeline would be of interest to the Lenders.

2nd if needed

Yes, lobby is fine by me

[Investar]

Who looks at their books and invests? Craziness. In 18 days I'm out, so I'm happy to hear about the bridge loan.

Not so much craziness as desperation? Two insiders and the rest of Prosper's current investors with $40m already on the table dipped into their collective jars of pocket change to keep things running for 60 more days. In the meanwhile, Prosper continues its search for a longer term solution. I get the impression they said, "okay we'll give you 60 more days since you still think you can close to this stock deal you've been working on."

[Xenon481]

The countdown to Prosper closing its doors on April 1st, 2010 has started!

57 days remaining!

[yankeefan]

It's interesting that they're paying 15% (annual rate) for a 2 month note.  Obviously no bank credit available to them.

[NewHorizon]

Obviously no $2,000,000 bank credit available to them.

Fixed.

Not to pick nits, but technically, it's not known - certainly not from this 8-K - whether or not Prosper could take out a far smaller (and hence not very useful) credit line at a bank.

[bamalucky]

It's interesting that they're paying 15% (annual rate) for a 2 month note.  Obviously no bank credit available to them.

Thats at least 2x if not 3x the going rate a safe company would be paying. Luckily there's no public shareholders to dilute.  Oh wait all the lenders are getting diluted

[yankeefan]

Loan is featured on the Blog today.
Prosper VC’s Bridge to Series D Fund Raise