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[Flying Missle]

From the 10-K

On March 30, 2010, the Company entered into a Letter of Intent for the private placement of shares of the Company’s Series D Preferred Stock for an aggregate purchase price between $13.3 million and $15.8 million, including approximately $3.3 million from conversions of outstanding principal and interest on promissory notes due to existing investors, a minimum of $3.0 million from outside investors and a minimum of $7.0 million in additional investments from existing investors. The terms of this agreement are still subject to closing, which the Company expects to happen no later than April 15, 2010.

Does the bolded above mean that they are indeed collateralizing the Prosper 3.0 Notes for the Series D Preferred Stock?

No, I think that refers to the bridge loans made to PROSPER by various investors.

OK, that makes sense. So, it basically just means that the loans are being paid off by Series D stock. That means that they are only truly expecting $10-12.5 million in new incoming money, right?

Sounds like they're going to capitalize the interest they owe the current investors.
That's when you know you're in trouble. You're borrowering just to pay interest.

[Mtnchick]

Nominate for lobby

[Cushie]

Nominate for lobby

Gladly second. 

[God-Father]

Third

[VT2VA]

FYI - the conversion of outstanding bridge notes into the new preferred stock at the new issue price is very standard.  Essentially, the existing investors put in money not yet knowing how the new shares would be priced, then the notes are converted into the new preferred when that price is determined.  This will definitely be a down round (the Series D issue price will be much less than the Series C).

Also, an LOI is a good sign and a bit more than financing simply still being negotiated, assuming the new investors are actually parties to the LOI.  The existing investors don't need to undertake due diligence, and the new investors have probably already been looking into the company.  When deals fall apart, it's usually because due diligence reveals things the investors don't like.  Still, these deals take time and I wouldn't expect this to close by Apr. 15.

[Xenon481]

FYI - the conversion of outstanding bridge notes into the new preferred stock at the new issue price is very standard.  Essentially, the existing investors put in money not yet knowing how the new shares would be priced, then the notes are converted into the new preferred when that price is determined.  This will definitely be a down round (the Series D issue price will be much less than the Series C).

Also, an LOI is a good sign and a bit more than financing simply still being negotiated, assuming the new investors are actually parties to the LOI.  The existing investors don't need to undertake due diligence, and the new investors have probably already been looking into the company.  When deals fall apart, it's usually because due diligence reveals things the investors don't like.  Still, these deals take time and I wouldn't expect this to close by Apr. 15.

Anybody investing into Prosper has not done their due diligence.

[cowdiddly]

Lets see. Prosper has borrowed 43million to date. looking to get another 15million which will make 58million in the hole. Has only funded 193million in total loans. So approximately prosper owes 1 dollar for every 3 it ever loaned out assuming this was even their money. Ummm..... pardon me, do you mind moving that deck chair over a little so I can inflate this raft?

[VT2VA]

FYI - the conversion of outstanding bridge notes into the new preferred stock at the new issue price is very standard.  Essentially, the existing investors put in money not yet knowing how the new shares would be priced, then the notes are converted into the new preferred when that price is determined.  This will definitely be a down round (the Series D issue price will be much less than the Series C).

Also, an LOI is a good sign and a bit more than financing simply still being negotiated, assuming the new investors are actually parties to the LOI.  The existing investors don't need to undertake due diligence, and the new investors have probably already been looking into the company.  When deals fall apart, it's usually because due diligence reveals things the investors don't like.  Still, these deals take time and I wouldn't expect this to close by Apr. 15.

Haha.  Probably true.  However, the Series D shares will have priority over all prior rounds, so apparently someone sees value going forward.  Perhaps a new investor sees good value in a platform that has been established AND gotten through the SEC circus.  It cost a lot of (other investors') money to get this far, and it's plausible new investors are getting a good deal to buy into the company now.

Anybody investing into Prosper has not done their due diligence.

[BrassKnuckles]

great news! Almost up to my 3 years... this will hold them over for sure until my last dime is out

[kenL]

April 15th is here. Still no word. I'm waiting anxiously.

[112233]

scambling to secure $10M more in light of LC's announcement yesterday?

.. or their announcement was BS to begin with

[divindj]

scambling to secure $10M more in light of LC's announcement yesterday?

.. or their announcement was BS to begin with

hehe, told yah i wasn't holding my breath... pinkslips prolly soon-come for all non-essential prosper folks

[VT2VA]

Not that it's going to happen this week, but VC deals usually close on a Friday.

[kenL]

From the prosper blog.

Prosper expects the closing to happen no later than April 15, 2010.

I guess the key word here is 'expects'. Yeah they must be doin a last minute scramble to get more funds to show up LendingClub (that darn Renaud!). They probably have enough funds in the bank to go for a few days more and a second delay announcement would look pretty stupid so we'll just have to wait a business day or two more.

[Urbi_et_Orbi]

Prosper DID file a "Post-Effective amendments for registration statement" with the SEC today.

http://sec.gov/Archives/edgar/data/1416265/000141626510000159/0001416265-10-000159-index.htm

Still not seeing anything final on Round D.