What is a renewable unsecured subordinated note?
A renewable unsecured subordinated note is a promise to pay the principal and interest on the note to the holder by Zanett, Inc. By purchasing a note, you are lending money to Zanett. The note represents Zanett’s obligation to repay your loan with interest. When the loan matures, you can elect repayment of the note and your investment will be returned to you along with any accrued but unpaid interest. However, if neither you nor Zanett elect repayment at maturity, the note automatically renews for another term and continues to earn interest. Zanett is issuing the notes as a new financing.
