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Finance: What is Equity Kicker? 8 Views
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Description:
What is Equity Kicker? An Equity Kicker is an added incentive for a preferred stock or bond offering in the form of a warrant or option to purchase stock at a particular strike price or for conversion to equity rights. D.H. Blair was particularly renowned for equity kickers in their investment banking deals during the 1990s.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Ethics/Morals
- Terms and Concepts / Stocks
- Terms and Concepts / Trading
Transcript
- 00:00
Finance allah shmoop what is an equity kicker It's that
- 00:07
it's hiked it's up It's good Okay yeah You knew
- 00:10
we were going to start their well in finance Land
- 00:13
and equity kicker is usually a deal sweetener for debt
- 00:17
or lenders So shmoop akane valley bank loans whatever Dot
Full Transcript
- 00:21
com five million bucks at eight percent interest but with
- 00:24
a catch and not a football catch get down The
- 00:27
bank doesn't feel that eight percent is enough to cover
- 00:30
the risk and well other craft that whatever dot com
- 00:33
brings with it they ain't google So in addition to
- 00:35
the eight percent interest shmoop akane valley bank wants an
- 00:39
equity kicker in the form of us A three percent
- 00:43
warrant coverage That is they want three percent of the
- 00:46
value of the loan of five million bucks or one
- 00:49
hundred fifty thousand shares or warrants to buy a share
- 00:53
It's like a really cheap price The option of whatever
- 00:55
dot com thrown in as part of the deal those
- 00:58
one hundred fifty thousand shares our equity and they kick
- 01:02
the debt deal to potentially be worth a lot more
- 01:05
Should things go well at whatever dot com but yeah 00:01:09.099 --> [endTime] We're not hopeful
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