The end of the era of easy money is forcing companies that need cash to get creative. Dozens of companies have recently raised money through so-called structured private funding rounds, and bankers and lawyers say there are many more in the works, the Wall Street Journal reported. A number of companies with depressed stocks and limited access to traditional financing are doing so, often adding sweeteners like extra dividends or preferred-note status to lessen the risk and make the deals more attractive for investors. Some, like electric-vehicle maker Lordstown Motors Corp., are announcing them after they are done, in an effort to limit an additional drop in share price. Typically, public companies disclose plans to sell more shares and then spend a few days meeting with prospective investors to drum up interest, often putting pressure on existing shares as they do so. Health-insurer Bright Health Group Inc. raised $175 million in a similarly structured deal in October.
