PIK Dividends Sample Clauses
A PIK (Payment-in-Kind) Dividends clause allows a company to pay dividends to shareholders in the form of additional securities, such as more shares, rather than cash. Typically, this clause is used when a company wishes to conserve cash or does not have sufficient liquidity to make cash payments, so it issues new shares or other instruments to satisfy dividend obligations. This mechanism is common in private equity or high-yield debt arrangements, where cash flow may be restricted. The core practical function of the PIK Dividends clause is to provide financial flexibility for the issuer while still rewarding investors, especially during periods when cash resources are limited.
POPULAR SAMPLE Copied 18 times
PIK Dividends. (i) Notwithstanding anything to the contrary in Section 4(c), for no more than 12 Dividend Periods (whether consecutive or non-consecutive) prior to June 15, 2024 (a “PIK Quarter”), the Company may, at its option and in its sole discretion as exercised by the Board of Directors, with respect to all or any portion of the accrued, declared and payable dividends for such Dividend Period, elect to (A) pay such dividends in the form of additional shares of Series A-1 Preferred Stock at a per share price equal to $975.00 or, (B) in lieu of paying such dividends, increase the Stated Value of the applicable shares of Series A-1 Preferred Stock by an amount equal to the accrued and payable dividends on such shares for such applicable PIK Quarter. If the Company fails to fully declare and pay in cash by the Dividend Payment Date, or is unable to fully pay in cash by such date, the accrued dividends with respect to a Dividend Period then, with respect to any unpaid portion but subject to Section 4(e), (x) to the extent any of the ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇ remain available, the Company shall be deemed to have made an election under Section 4(d)(i)(B) and (y) to the extent none of the ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇ remain available, the Stated Value shall be automatically increased by an amount equal to the lesser of (i) a Dividend Rate of 9.0% per annum and (ii) the unpaid portion of any such accrued dividends (provided that any amounts which increase the Stated Value hereby shall no longer be considered Unpaid Dividends), with any remaining unpaid portion in excess of such increase in Stated Value remaining Unpaid Dividends.
(ii) For the avoidance of doubt, any portion of a declared dividend not paid as provided in the foregoing clauses will be paid in cash.
PIK Dividends. The Company shall take all actions that are necessary or appropriate under the Georgia Business Corporation Code or otherwise to declare the PIK dividends (as such term is defined in the Articles of Amendment) on a quarterly basis on the Series A Preferred Stock in accordance with paragraph 3(a) of the Certificate of Designations.
PIK Dividends. If the Exchange Conditions Precedent are not met by April 1, 2006, then, retroactively commencing on the Date of Issuance, additional dividends on the Series D Perpetual Preferred Shares shall begin to accrue at a rate of 15% per annum, increasing to a rate of 17% per annum on April 1, 2007 and further increasing to a rate of 19% per annum on April 1, 2008, which rate shall be calculated on the basis of a year of 360 days consisting of twelve 30-day months. Such additional dividends shall be paid on a quarterly basis on each Adjustment Date in additional Series D Perpetual Preferred Shares having a liquidation preference per share equal to the Series D Perpetual Preferred Liquidation Preference as of the immediately preceding Adjustment Date ("PIK Dividends"); provided, however, that with respect to any retroactive payment of PIK Dividends made pursuant to this Section 4(b), such retroactive payment shall be made on June 30, 2006.