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.
References in periodicals archive ?
0% from 75% to 85% LTV, but can go higher if needed (we will most likely require an equity kicker above 85%).
profile) on a fully secured basis with an equity kicker.
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.
5 Million, was agreed to with several equity kicker bases and positioning in several of the privately owned companies including that of providing the oil field service sector leveraging opportunities, such as, leveraging our manufacturing procedures to include exclusive branding of certain products for induction to the coil tubing service industry and products into future current and future subsidiaries focusing in the gas drilling and distribution services.
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.
Any release could further prejudice to the Bondholders' rights to recover the value of an equity kicker that was added to the bond instruments by a Restructuring Agreement.