Payment-in-Kind (PIK)

Last Updated: Jun 7, 2019

Created By :

Last Edited By :

Created On :

In financial terms when payment is paid in the form of notes, preferred stock, interest, dividends, or equity instead of cash. This is commonly seen in mezzanine debt agreements where a portion of the interest will be paid in cash and a portion will be PIK. The PIK or accrued interest will add to the overall liability of the mezzanine debt owed.