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 ?
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!
One form of mezzanine financing consists of debt financing plus the so-called equity kicker. 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.
Lenders and savers assume comparatively less risk, but they also have a cap on their upside: the principal they will get back is limited to what they loaned, with no equity kicker. Mian and Sufi give nary a mention to that concept.
The associated "cost" of this instrument may appear lower because of the lower coupon that would typically accompany a convertible, owing to the equity kicker prevailing at the option of the noteholder.
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%).
"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," according to a press release.
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 many such cases, equity has been written down to near zero, but company control (and an out-of-the-money equity kicker) has remained with the original owner in the belief that the owner best knows how to manage a recovery.
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.