Sampras Ltd issued $20 million of convertible notes on 1 July 2020. The notes have a life of 6 years and a face value of $20 each. Annual interest of 5% is payable at the end of each year. The notes were issued at their face value and each note can be converted into one ordinary share in Sampras Ltd at any time over their lives. Organisations with a similar risk profile to Sampras Ltd have issued debt with similar terms but without the option to convert at the rate of 7% per annum.