equity kicker

equity kicker definition - finance
Giving an ownership stake to someone who lends money to a company as part of the loan arrangement. An equity kicker may be given to a mortgage REIT (real estate investment trust) or a limited partnership that lends money to a developer. In exchange for the equity kicker, the interest rate on the loan may be slightly lower.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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