Loan Agreement: Capitalized (or PIK) Interest (Syndicated Transaction) | Practical Law
A set of provisions in a syndicated loan agreement under which all or a portion of the interest payable by a borrower on a term loan is capitalized for all or part of its term. This interest is sometimes referred to as payment-in-kind (or PIK) interest. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips.