FeaturedMay 17, 2024
Private Credit and the Rise of PIK Loans
Unkind Payment in Kind
Payment in kind is a bit euphemistic, in that there really is not much payment, and when there is, it usually isn’t very kind. Since the rapid hike in rates, we at TRA have seen an increase in commercial tenants that come with some additional baggage, something called a Payment in Kind note, also called a PIK note or PIK loan. Before we go too far unpacking this baggage, let’s take a minute to discuss at a high level just what a PIK loan is and why tenants may seek them.
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