PIK the Clause You Need

Check out our new payment-in-kind (PIK) clauses for use in a syndicated or bilateral credit agreement. PIK refers to a loan where the borrower is allowed to make interest payments in forms other than cash. PIK financing is commonly found in leveraged buyout transactions and, depending upon the situation, the payment of interest is often made by issuing other debt or by the issuance of warrants.

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Related Content

• Bridge Financing and Facilities in Private Equity
  Read this practice note discussing bridge financing and facilities in private equity. Bridge financing is a short-term financing strategy that provides immediate cash flow between periods of long-term financing.

• Payment in Kind (PIK) Toggle Clause
  Use this PIK toggle clause in relation to payment of interest on security.

• Mezzanine Lending
  Review this overview of the typical terms, primary documentation, and key issues attorneys must consider in structuring mezzanine financing deals, both at the outset of a transaction and during a restructuring.

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