PIK debt

PIK debt
United Kingdom
A type of junior debt on which the borrower (or issuer) pays no cash interest (or yield) until the principal amount is repaid (or redeemed). PIK debt can be structured in a variety of ways, including as a subordinated loan, a deep discount bond , loan notes or an issue of bonds in the public debt markets. Depending on how the PIK debt is structured, on each interest payment date the accrued interest is either added to the principal and is paid when the debt matures or is "paid" by the issue of further loan notes or bonds.
PIK stands for "payment in kind" or "paid in kind".

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • PIK loan — A PIK Loan is a type of loan which typically does not provide for any cash flows from borrower to lender between the drawdown date and the maturity or refinancing date, not even interest or parts thereof (see mezzanine loan), thus making it an… …   Wikipedia

  • PIK — payment in kind (PIK) USA In the case of bank loans, a feature whereby the interest is added to the principal balance of the loan (referred to as capitalized) instead of being paid to the lender in cash (called cash pay interest). In the case of… …   Law dictionary

  • Naguib Sawiris — Born June 15, 1954 Nationality Egyptian Net worth $2.5 billion (US$) …   Wikipedia

  • Mezzanine capital — Mezzanine capital, in finance, refers to a subordinated debt or preferred equity instrument that represents a claim on a company s assets which is senior only to that of the common shares. Mezzanine financings can be structured either as debt… …   Wikipedia

  • List of Star Control races — This is a list of fictional alien species that appeared in various games of the Star Control franchise. Contents 1 History and reception 2 Introduced in Star Control 2.1 Androsynth 2.2 Arilou …   Wikipedia

  • Leveraged buyout — A leveraged buyout (or LBO, or highly leveraged transaction (HLT), or bootstrap transaction) occurs when a financial sponsor acquires a controlling interest in a company s equity and where a significant percentage of the purchase price is… …   Wikipedia

  • History of private equity and venture capital — The history of private equity and venture capital and the development of these asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. Within the broader private equity industry, two distinct sub… …   Wikipedia

  • Private equity in the 21st century — relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub industries, leveraged buyouts and venture capital experienced growth along parallel although… …   Wikipedia

  • Private equity — In finance, private equity is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. There is a wide array of types and styles of private equity and the term private equity has… …   Wikipedia

  • Glazer ownership of Manchester United — Manchester United Football Club is an English football club based in Old Trafford, Greater Manchester. The club was formed as Newton Heath LYR Football Club, the works team of the Lancashire and Yorkshire Railway depot in Newton Heath, in 1878.… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”