Payment in fine
What is payment in fine for the repayment of loans in LBO context? How is it different from bullet repayment?
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I think you mean payment-in-kind. PIK usually means that a 'coupon' is paid with more principle due at maturity. Usually a company doesn't have the resources for cash coupon and has agreed with a lender to Pay in Kind.
For example - $1000 loan with $50 coupons cash would be a very vanilla bond. a $1000 bond with $100 PIK would have $0 cash coupons but at maturity you would received $100 in addition to the principle for every coupon due.
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