Tom Brady-Backed Hero Bread in Talks to Raise Convertible Note

Hero Bread, which makes low-carbohydrate loaves, tortillas and buns, is in talks to raise a convertible note, according to a person with knowledge of the matter, making it the latest startup to seek non-traditional funding as private markets sputter.

The note is poised to convert at either a $400 million valuation or a 20% discount to the company’s next funding round, said the person, who asked not to be identified because the talks aren’t public. A representative for San Francisco-based Hero Bread declined to comment.