PIK Rate definition
Examples of PIK Rate in a sentence
The Loans shall bear interest at a per annum rate equal the Applicable PIK Rate which shall accrue and be paid in kind, by being added to the principal balance of the outstanding Loans on the last day of each calendar quarter, beginning on June 30, 2016, or, if such day is not a Business Day, the first Business Day immediately following such last day of the calendar quarter (each such date, an “Interest Payment Date”).
The rate of interest on the Loan is the percentage rate per annum which is the PIK Rate (the “PIK Interest”), provided that such rate may be increased as specified in Clause 22.1 (Completion and Operation) in respect of the period specified in such Clause.
Until such time as the Borrower notifies the Administrative Agent in writing that it is electing the Cash Rate, the Borrower will be deemed to have elected the PIK Rate for the Term Loan B.
In addition, the outstanding principal amount of each Restatement Date Incremental Term Loan shall accrue interest from and after the Restatement Date at a per annum rate equal to the Applicable PIK Rate, which amount shall be paid-in-kind, by being added to the principal balance of the Restatement Date Incremental Term Loans (inclusive of any PIK Amount theretofore so added) on each Payment Date commencing on the first Payment Date following its Funding Date.
Any and all amounts of interest accrued at the PIK Rate shall be added to the Outstanding Principal Balance as of each Payment Date and interest shall accrue thereon from the date on which such amounts are added to the Outstanding Principal Balance.