equity kicker investment & finance definition
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.
See equity kicker in Wall Street Words
An addition to a fixed-income security that permits the investor to participate in increases in the value of equity ownership. Two common types of equity kickers are a convertible feature on some bonds that allows the bonds to be exchanged for shares of stock, and warrants to purchase stock that are sold in combination with a new bond issue. Compare
real estate certificate of deposit.
Learn more about equity kicker