Paid-In-Kind (PIK) Interest: Full Tutorial for LBO Models

Learn more: breakingintowallstreet.com/co...
In this tutorial, you'll learn about PIK (Paid-in-Kind) Interest in leveraged buyouts and LBO models and how it affects the returns for both the lenders and the equity investors.
Files & Resources:
breakingintowallstreet.com/kb...
Table of Contents:
0:00 Introduction
4:15 Part 1: PIK vs. Cash Interest in an LBO
7:39 Part 2: The Returns to Lenders
9:07 Part 3: Debt Principal Repayments and PIK
10:35 Part 4: PIK Interest and Taxes
12:12 Recap and Summary

[@kk22001]

Cool thanks

[@financialmodeling]

Thanks for watching!

[@FrenchPaperz]

Could you please explain the impact on IRR for lenders/PE again? I did not fully understand the explanation. Thanks!

[@financialmodeling]

I would recommend looking at the screenshots for the comparison and written explanation here: breakingintowallstreet.com/kb/leveraged-buyouts-and-lbo-models/pik-interest/