This is the second guide in the series on Payment-in-Kind (PIK). Readers are encouraged to review the initial guide, “Payment-in-Kind (PIK) Interest: Training Guide,” beforehand, as this guide builds upon and partially overlaps with the content covered there. Table of Contents What is “PIK” in Loans & “PIK Traveling Free” PIK = Payment‐in‑Kind interest Because Read more

Introduction Payment-in-Kind (PIK) interest is a specialized financing mechanism often used in syndicated loans, mezzanine debt, and private credit markets. Rather than requiring periodic cash interest payments, PIK structures allow the borrower to defer interest by capitalizing it—adding it to the principal balance of the loan. While this can provide strategic flexibility during capital-intensive ramp-up Read more