In early March, when online retailer Boxed decided to go public through a merger with a special purpose acquisition company, it expected to raise $150 million by selling equity. But the company failed to attract investors, according to securities filings.

To raise cash for its business—which Boxed estimated would lose $200 million before reaching profitability—the company instead got an $87.5 million loan from public stock investors by issuing convertible notes. That arrangement didn’t come cheap. Boxed agreed to pay 7% interest on the debt plus give holders of the note the right to potentially buy its future shares at a discounted price. The financing helped seal the deal for Boxed and illustrates how some companies are dealing with a more jittery SPAC market.