BarbriSFCourseDetails
  1. keyboard_arrow_leftBack
BarbriPdBannerMessage

Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Tuesday, October 21, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

$347.00

This course is $0 with these passes:

CLE
ALL

This CLE webinar will discuss the growing popularity of payment-in-kind (PIK) interest features in private credit facilities. The panel will explore common PIK structures, highlight the benefits and risks associated with PIK interest terms, and provide practical guidance for negotiating and drafting these terms in new and existing loan agreements.

Faculty

Greg Kramer
Partner, Co-Chair New York Capital Markets and Securities Practice Group
Haynes & Boone LLP

Mr. Kramer represents investment funds and public companies in his broad-based corporate practice. Clients particularly seek his representation in connection with private investments in public equity (PIPEs), private credit transactions and mergers and acquisitions. A go-to transactional lawyer with broad and adaptable experience, Mr. Kramer offers clients creative, keen insights in addition to documenting deals, and is willing to jump in and handle whatever is needed to keep a transaction moving forward until it crosses the finish line. Having represented both issuers and investors, he understands deals from the perspective of each party, making him a skilled and effective negotiator.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Justin Riess
Partner
Haynes & Boone LLP

Mr. Riess is the managing partner of Haynes Boone’s Charlotte office. His practice focuses on leveraged finance, specialty finance, private credit finance and syndicated lending. During his 21 years of practice, Mr. Riess has advised global financial institutions, corporate borrowers and private equity firms in syndicated lending transactions ranging from $50 million to $3 billion. He has experience in many industries including healthcare, franchise, defense and aerospace, food and beverage and financial services. In addition to corporate lending, Mr. Riess has represented banks and other lenders in loans to high-net-worth individuals. These individuals often have complex lending needs with collateral ranging from stock portfolios and real property to ownership interests in sports franchises, private planes and yachts. More recently, he has added experience in digital currency loans secured by specific mining equipment and various digital currencies.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

PIK interest provisions allow borrowers to accrue interest to the loan principal instead of making cash-based interest payments at regular intervals. Due to their flexibility and convenience, PIK interest terms have become a growing trend in the private credit market because they permit borrowers to incur their desired amount of leverage without sacrificing their liquidity position and provide lenders with significant returns.

While there are many variations of PIK interest provisions, most provisions fall into one of three categories: full PIK, discretionary PIK, or a PIK toggle, which allows borrowers to switch between PIK interest and cash pay interest based on predefined performance metrics. A fourth PIK tool that has been gaining some traction is the synthetic PIK structure which allows borrowers to pay interest in cash through a separate synthetic interest loan facility that functions as a capital reserve for PIK interest payments.

While PIK interest terms can be beneficial to borrowers, lenders, and equity holders, there are key considerations for all parties involved. Counsel must understand the potential risks and pitfalls that can arise with PIK interest terms to ensure their client's interests are protected over the life cycle of the loan.

Listen as our expert panel explains the benefits of PIK interest terms, the complexities and potential risks, and key drafting and negotiation considerations.

Outline

I. Background: What is PIK; growing use of PIK interest provisions in today's private credit market

II. Types of PIK interest terms and their key features ranging from less risky to more risky

A. PIK at origination

B. Partial PIK

C. PIK toggle

D. Synthetic PIK

E. Restructured PIK

III. Circumstances when PIK provisions are used

IV. Triggers, toggles, premiums, and availability periods

V. Benefits of PIK interest provisions

VI. Potential pitfalls to avoid

VII. Strategic considerations for borrowers, lenders, and equity holders in distressed companies

VIII. Negotiating and drafting tips

IX. Practitioner pointers and key takeaways

Benefits

The panel will discuss these and other key considerations:

  • How have current market conditions created a rise in the number of PIK interest loans?
  • What are the various forms of PIK interest terms and what are their key features?
  • What are the benefits and potential pitfalls with PIK interest loan terms?
  • What are key considerations for negotiating and drafting PIK interest provisions from both the borrower's and lender's perspective?