PIK Loans definition
Examples of PIK Loans in a sentence
Subject to the terms and conditions of this Agreement (including Section 6), each Borrowing (other than a Borrowing of PIK Loans) shall be made on written notice in the form of Exhibit B given by Borrower to the Lenders not later than 11:00 a.m. (Central time) on the Borrowing Notice Date (a “Notice of Borrowing”).
The Lender may supplement this Note by attaching to this Note a schedule (the “Note Schedule”) to evidence additional PIK Loans made by the Lender to Borrower following the date first above written.
Subject to the terms and conditions of this Agreement (including Section 6), each Borrowing (other than a Borrowing of PIK Loans) shall be made on written notice in the form of Exhibit B given by Borrower to Administrative Agent not later than 11:00 a.m. (Central time) on the Borrowing Notice Date (a “Notice of Borrowing”).
Subject to the terms and conditions of this Agreement (including Section 6), each Borrowing (other than a Borrowing of PIK Loans) shall be made on written notice in the form of Exhibit B given by the Borrower to the Lenders not later than 11:00 a.m. (Central time) on the date required under Section 6.01(i) or 6.02(d), as applicable (a “Notice of Borrowing”).
In the case of any partial prepayment, the amount of such prepayment shall be allocated first to Loans drawn in the initial Borrowing (and PIK Loans in respect thereof), then to Loans drawn in the second Borrowing (and PIK Loans in respect thereof), and then to Loans drawn in the third Borrowing (and PIK Loans in respect thereof).
The Borrower shall deliver to the Agent a written notice of its election to pay an amount of interest in the form of PIK Loans at least five (5) Business Days prior to the applicable Interest Payment Date.
Such installment payments shall be in equal principal amounts (which amounts shall be reduced as a result of the application of prepayments in accordance with Section 2.7), plus accrued and unpaid interest, which principal amounts shall be determined by the Agent based on the principal amount of the Loans (including, if applicable, any PIK Loans) outstanding on the first Interest Payment Date following the Interest Only Period.
In connection with a Qualified IPO, up to 25%, in 5% increments, of the outstanding principal balance on the Loans (including PIK Loans) may be converted, at Borrower’s option and subject to terms specified herein, into Common Stock (the “Conversion Shares”) at a conversion price per share equal to the Qualified IPO Price (the “Conversion”).
Commencing on the first Interest Payment Date following the Interest-Only Period, the Borrower shall repay to the Agent for the account of the Lender on each Interest Payment Date an installment payment in respect of the Loans (including, if applicable, any PIK Loans).
After giving effect to such Borrowing, no more than two Borrowings shall have been made; provided that, for purposes of this Section 6.02(c), “Borrowing” shall not be deemed to include any borrowing of PIK Loans.