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Payment-In-Kind Bond |
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Payment-In-Kind Bond A bond in which coupon payments come in the form of more bonds, rather than cash. At times, the investor has the option of choosing whether to accept cash or payment-in-kind, but more often this option resides with the issuer. A problem with PIK bonds for the issuer is the fact that it becomes tempting to pay coupons with more debt rather than cash when the company has a liquidity problem. Of course, doing this often only adds to the issuer's liquidity problems. This type of bond was not unusual during the private equity boom in the mid-2000s, but became rare during the credit crunch at the end of the decade. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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No references found | Specifically, the rules do not apply in respect of PIK bonds issued pursuant to the terms of a debt instrument issued on or before July 10, 1989. An event of default has occurred and is continuing whereby the sum of the principal balances of all non-defaulted/deferred interest PIK securities, the calculation amount of all defaulted/deferred interest PIK bonds and the total amount of cash and eligible investments on deposit in the principal collection account is not at least equal to the outstanding amount of rated notes. All OC test calculations net out a percentage of defaulted and written down securities and deferred interest PIK bonds, as well as a percentage of assets rated below investment grade that exceed certain covenanted amounts. |
PIK Bond |
Piipuu, Ellinor Ianovna PIIR PIIRS PIIS PIISA PIISBUN PIIT piitis PIIVC PIIW PIIX PIJ PIJ PIJAC Pijama Terlik Televizyon PIJF PIJHL PIJIP PIJM Pijper Pijper, Willem PIJR PIJV pik pik PIK (disambiguation) PIK Bond PIK BondsPik Lenin Pik Lenin Pik Lenina Pik Lenina PIK Securities PIK Security PIK3CG pika pika pika pika Pikachu Pikachurin Pikaki Pikalevo Pikalyovo Pikapokemaster PIKAPP pikas pikas pikas pikau PIKB pike pike pike pike pike Pike & San Isabel National Forests | |||||||
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