equity kicker

Equity kicker

Stock warrants issued attached to a new debt, preferred or common stock issue to improve the salability of the issue.

Equity Kicker

An option to purchase stock attached to a bond. A bond issuer may attach an equity kicker as a sweetener to encourage investment in the bond.

equity kicker

An addition to a fixed-income security that permits the investor to participate in increases in the value of equity ownership. Two common types of equity kickers are a convertible feature on some bonds that allows the bonds to be exchanged for shares of stock, and warrants to purchase stock that are sold in combination with a new bond issue. Compare real estate certificate of deposit.
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Admittedly, the buyout will be taxed less than your current income, with a possible equity kicker when they flip the practice, which they hope to do three or four times
An equity kicker takes many forms, but always allows for the financing provider to benefit from growth through the acquisition of a small equity share in the future.
InnoVen, for instance, gets an equity kicker in the investee company.
For the angel and early-stage investor these return scenarios are highly attractive, providing repayment of principal that takes your risk off the table, monthly cash flows, a compelling return on investment and additional skin-in-the-game in the form of an equity kicker (usually no more than 1%).
However, their investments are primarily in the form of subordinated debt with an equity kicker (warrants to purchase stock) that allows them to participate in the value growth of the business.
The Fund targets to pay an attractive running cash yield and is structured to benefit from the potential asset appreciation on vessels through an equity kicker.
Investment Bank, unit of Qatar Islamic Bank said that the fund targets to pay an attractive running cash yield and is structured to benefit from the potential asset appreciation on vessels through an equity kicker.
oAttractive return for early investors with equity kicker
Many nonpublic and closely held companies issue debt with an equity kicker, such as a warrant.
In California, however, lenders are allowed to compensate for this limitation by obtaining shared appreciation--an equity kicker that gives the lender a portion of any price appreciation in the underlying real estate.
Of course, PCA's David Meredith aims to calculate what an executive's stock options will be worth five years from now--and then to gauge the current-year effect of the equity kicker on compensation.
Therefore, with an equity kicker, a strip financing arrangement can be implemented with each lender holding a smaller fraction of the equity than when debt is correctly priced.