PIK Interest Sample Clauses
A PIK (Payment-in-Kind) Interest clause allows interest on a loan or debt instrument to be paid in forms other than cash, typically by issuing additional securities or increasing the principal amount owed. In practice, this means that instead of making regular cash interest payments, the borrower can defer these payments by accruing them to the outstanding balance or by providing more debt instruments to the lender. This clause is commonly used in situations where the borrower may have limited cash flow in the short term but expects to have greater resources in the future. Its core function is to provide financial flexibility to the borrower while still compensating the lender, thereby facilitating deals where immediate cash payments are not feasible.
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PIK Interest. (a) In the event that the Company pays PIK Interest (including, for avoidance of doubt, the Rollover Fee) as set forth in the Notes, the Company shall issue Additional Notes having an aggregate principal amount equal to the amount of interest then due and owing as PIK Interest as follows:
(i) with respect to Notes represented by one or more Global Notes, by (A) increasing the principal amount of the outstanding Global Notes, effective as of the applicable interest payment date, by an amount equal to the amount of Additional Notes for the applicable interest period (rounded up to the nearest $1) or (B) by issuing Additional Notes in the form of Global Notes, dated as of the applicable interest payment date, in an aggregate principal amount equal to the amount of PIK Interest for the applicable interest period (rounded up to the nearest $1); and
(ii) with respect to Notes represented by Definitive Notes, by issuing Additional Notes in the form of Definitive Notes, dated as of the applicable interest payment date, in an aggregate principal amount equal to the amount of PIK Interest for the applicable interest period (rounded up to the nearest $1).
(b) The Company will, if required by the rules and regulations of the Luxembourg Stock Exchange, promptly deliver a notice to the holders of the Notes stating the amount of PIK Interest, if any, to be paid either by publication in a leading newspaper having a general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or post such notice on the official website of the Luxembourg Stock Exchange.
(c) Following an increase in the principal amount of the outstanding Global Notes as a result of a payment of PIK Interest in the form of Additional Notes, the Global Notes will bear interest on such increased principal amount from and after the applicable interest payment date. Any Additional Notes issued in the form of Definitive Notes or Global Notes will be dated as of the applicable interest payment date and will bear interest from and after such date. Additional Notes issued pursuant to a payment of PIK Interest will have identical terms to the originally issued Notes except interest on such Additional Notes will begin to accrue from the date they are issued rather than the Issue Date.
(d) The Trustee (or its authenticating agent) will, following receipt of an authentication order signed by an Officer of the Company, authenticate and deliver any Additional Notes in the form of Definitive Notes or Gl...
PIK Interest. The Issuer shall be entitled to elect to pay interest on the Superpriority Notes as Cash Interest or in the form of PIK Interest; provided that the Issuer shall be entitled to elect to pay the Applicable Margin portion of interest (but not the Compounded SOFR portion of interest) on the Superpriority Notes in the form of PIK Interest as provided herein, including any Default Interest as set forth in Section 2.01(g). In the event the Issuer elects to pay PIK Interest for the applicable Interest Period, the Issuer shall deliver to the Trustee one (1) Business Day prior to the commencement of such Interest Period culminating with the applicable Interest Payment Date for the respective interest payment period, an Officer’s Certificate (i) stating that the Issuer has elected to pay PIK Interest on the applicable Interest Payment Date, (ii) setting forth the total amount of interest due and payable on the applicable Interest Payment Date, (iii) setting forth the amount of Cash Interest and PIK Interest to be paid on the applicable Interest Payment Date, and (iv) directing the Trustee to increase the aggregate principal amount of the outstanding Superpriority Notes as of the applicable Interest Payment Date in an amount equal to the PIK Interest payable on such date (a “PIK Notice”), which PIK Notice the Trustee and the Paying Agents shall be entitled to conclusively rely upon. The Trustee shall promptly deliver a copy of the PIK Notice to the Holders of the Superpriority Notes. In the event the Trustee does not receive the PIK Notice from the Issuer in accordance with the preceding sentence, interest on the Superpriority Notes for the applicable Interest Period shall automatically be payable in cash. Notwithstanding the foregoing, interest on the Superpriority Notes for the first Interest Period that is payable on the first Interest Payment Date of February 28, 2025 shall be payable as PIK Interest and the Issuer shall not be required to deliver a PIK Notice in respect thereof.
PIK Interest. In accordance with Section 2.09(e), the principal amount of the Loan shall also be increased on each Interest Payment Date by the PIK Interest Amount with respect to such Interest Payment Date unless the Borrower pays such PIK Interest Amount in cash on such Interest Payment Date pursuant to an election to do so in accordance with Section 2.09(e).
PIK Interest. The principal amount outstanding under this Note shall bear interest at a rate of two percent (2%) per annum (the “PIK Interest”) commencing on and including the Issue Date until the Maturity Date. The PIK Interest shall be payable annually in arrears on each PIK Interest Payment Date by issuing to the Holder new notes of the same type in certificated form in an aggregate principal amount equal to the amount of the PIK Interest for the applicable interest period (such new notes, the “PIK Notes”). This Note and any PIK Notes shall be treated as a single class for all purposes hereunder. The PIK Notes shall be identical to this Note, except that interest will begin to accrue from the date they are issued rather than the Issue Date. Accrued interest on this Note shall be computed on the basis of a 360-day year composed of twelve 30-day months and, for partial months, on the basis of actual days elapsed over a 30-day month.
PIK Interest. (A) At the Borrower’s election, interest may be payable entirely as PIK Interest. If the Borrower has delivered a PIK Interest Election Notice in accordance with the terms of this Section 2.06(a)(ii)(A), on the applicable Interest Payment Date, all accrued and unpaid interest shall be added to the principal amount of the Loans and shall, thereafter, be deemed an extension of additional Loans pursuant to the terms of, and subject to, the Loan Documents. PIK Interest shall be allocated ratably to the principal amounts of the Loans of each Lender in accordance with the Ratable Share of the Loans of such Lender. Unless the context otherwise requires, for all purposes hereof, references to “principal amount” of Loans refers to the original face amount of the Loans plus any increase in the principal amount of the outstanding Loans as a result of payments of PIK Interest. The entire unpaid balance of all PIK Interest shall be immediately due and payable in full in immediately available funds on the Maturity Date. Unless the Borrower delivers a PIK Interest Election Notice to the Administrative Agent at least three (3) Business Days prior to an Interest Payment Date, the Borrower will, subject to the immediately succeeding clause (B) below, be deemed to have elected for each Interest Period, to make interest payments in cash as set forth in Section 2.06(a)(i).
(B) Notwithstanding anything to the contrary herein, the addition of PIK Interest to the aggregate principal amount of the Loans shall not result in a reduction of the aggregate principal amount of unused Commitments hereunder.
PIK Interest. Any PIK Interest on the Notes will be payable to Holders by its addition to the principal amount of each Note in the manner provided in the next sentence. Subject to Section 5.03(B)(i), effective immediately before the Close of Business on each Interest Payment Date, the principal amount of each Note then outstanding will be deemed to be increased by the amount of accrued and unpaid PIK Interest on such Note for the applicable Interest Period to the nearest cent (with half of one cent rounded upward), and the Trustee will, upon receipt of a Company Order, record such increase in principal amount.
PIK Interest. Notwithstanding Section 3.02(c), so long as no Event of Default has occurred and is continuing, at any time prior to the second anniversary of the Closing Date, the Borrower may pay an amount of interest on the outstanding principal amount of Loans corresponding to up to 300 basis points of the Interest Rate then applicable pursuant to Section 3.02(a) in kind (in lieu of payment in cash for such portion, with the remainder to be paid in cash) on each applicable Payment Date, by irrevocable (except as permitted in the immediately succeeding proviso) written election of the Borrower to the Administrative Agent, to be delivered either (i) at least six (6) Business Days (or such shorter period as the Administrative Agent may agree) prior to such Payment Date or (ii) if the Borrower wishes to elect payment in kind on an annual basis, notification of such annual election at least five (5) Business Days (or such shorter period as the Administrative Agent may agree) prior to the first Payment Date in the relevant calendar year, which notice shall specify the amount of interest on the outstanding principal amount of Loans that the Borrower elected to pay in kind; provided that the Borrower may revoke any such annual election upon written notice to the Administrative Agent at least six (6) Business Days (or such shorter period as the Administrative Agent may agree) prior to any Payment Date during such annual period, which revocation shall be applicable to such Payment Date and each Payment Date thereafter during the remainder of such annual period. The aggregate outstanding principal amount of the Loan shall be automatically increased without the need for any action by any Person and capitalized on such Payment Date by the amount of such interest paid in kind in accordance with this Section 3.02(d). For the avoidance of doubt, the portion of the interest payable pursuant to Section 3.02(a) not paid in kind shall be paid in cash. If any Event of Default has occurred and is continuing as of any such Payment Date, all interest accruing on the Loans shall be due and payable in cash in arrears on such Payment Date.
PIK Interest. For the avoidance of doubt, once paid, PIK Interest and PIK Fees shall be treated as principal for all purposes hereunder and shall accrue interest thereon in accordance with Section 4.1 hereof.
PIK Interest. All PIK Interest shall be allocated on a “trades flat” basis as follows, regardless of how Interest and Accruing Fees are allocated: (i) PIK Interest that is capitalized or accreted prior to the Trade Date shall be included in the principal portion of the Purchase Price; (ii) PIK Interest that is capitalized or accreted on or after the Trade Date shall be for the account of the Purchaser for no additional consideration; and (iii) PIK Interest that has accrued but not yet capitalized or accreted as of the Settlement Date shall be for the account of the Purchaser upon capitalization or accretion for no additional consideration.
PIK Interest. With respect to the Loans, during the period from the Closing Date until the Interest Payment Date occurring closest to (but not after) the date that is eighteen (18) months after the Closing Date (the “PIK Period”), so long as no Default has occurred and is continuing on such date, by delivery of written notice to the Agent not less than five (5) Business Days prior to any Interest Payment Date, the Borrower may elect to pay all of the interest accrued on the Loans for the Interest Period ending on such Interest Payment Date “in kind” (“PIK Interest”); provided that during the PIK Period, the Applicable Margin shall be increased by one percent (1.00%) per annum with respect to any such interest paid as PIK Interest.