As a leveraged and acquisition finance lawyer with over 20 years of experience, Susan advises on the banking aspects of LBOs, P2Ps and corporate acquisitions and re-financings, both for mid-market and larger transactions and for domestic and cross-border deals. Formerly a partner at Hogan Lovells, Susan is now a senior consultant at the firm and, in addition to transaction support, is responsible for the acquisition finance team's documentation and training.
This Practice Note explains what PIK (payment in kind or paid in kind) facilities are and how interest is paid on these facilities. It explores the variations of how interest can be paid under PIK facilities, where such products sit in the capital structure of a financing and the forms of instruments these facilities can take. It also takes a look at the risks involved in these instruments and recent market trends.
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