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Old 28th May 2018, 16:00
  #16 (permalink)  
RMK
 
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Originally Posted by [email protected]
RMK - when you say PIK, I assume it is this you are talking about..........
Full PIK is rolled-up interest and principal; "cash-pay" is where you make some manner of interest payments, but principal is rolled-up. There are generally blends of these with instruments that PIK-toggle (turn it on/off) or start as PIK for a few years and revert to cash pay. It is seldom this straight forward however.

The overriding idea is that these debt structures are generally used for high-growth businesses; that is not the situation here. Their capital structure is not suited to their situation..
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