# Interest Payment in Kind

**IRI:** https://folio.openlegalstandard.org/R8mCsSoGFAK3ZNBZ7xFyEZz

## Labels

**Alternative Labels:**

- PIK Interest

## Definition

Interest Payment in Kind (PIK) is a method of paying interest on debt obligations using additional securities or other non-cash assets instead of cash. This payment structure allows the issuer to defer cash outlays by increasing the principal amount of the debt or by issuing additional securities, typically used in situations where the issuer wants to conserve cash or lacks immediate liquidity.

## Sub Class Of

- https://folio.openlegalstandard.org/RCezn96rpy4oRcZgzT9ULlh

**Deprecated:** False