Skip to main content

The rise of PIK sparks concerns

Corporate Member Joseph Price spoke with Private Debt Investor about the rise of payment in kind interest (PIK). 

Joseph says, “You’ll often see pure PIK interest and no cash pay in the first year of a loan. Using PIK facilities is becoming more popular at the holding company level, which is more expensive. The downside is that in such structures, lenders get paid last if there is a problem.”


Private Debt Investor