extra feature in a loan, beyond ordinary payments of interest, demanded by a lender as a condition for extending credit. The effect is to increase the yield over the term of the financing. From a legal viewpoint, kickers have to be disclosed in consumer loans as part of the finance charges, and in some instances may violate state usury laws.
In real estate finance, a kicker is an equity participation in the gross receipts from rental property, or an ownership stake in the property itself. In an equity kicker, the lender gets a given interest rate, plus a percentage of the rent over a certain dollar amount. Other forms of kickers are stock warrants exercisable at a future date, and rights to purchase securities.
added feature of a debt obligation, usually designed to enhance marketability by offering the prospect of equity participation. For instance, a bond may be convertible to stock. Other examples are rights and warrants. Some mortgage loans also include kickers in the form of ownership participation or in the form of a percentage of gross rental receipts. Kickers are also called sweeteners.
added feature of a debt obligation, usually designed to enhance marketability by offering the prospect of equity participation. For instance, a bond may be convertible to stock if the shares reach a certain price. This makes the bond more attractive to investors, since the bondholder potentially gets the benefit of an equity security in addition to interest payments. Other examples of equity kickers are rights and warrants. Some mortgage loans also include kickers in the form of ownership participation or in the form of a percentage of gross rental receipts. Kickers are also called sweeteners.
- Iighting instrument, located behind the subject and casting light behind the subject (backlight), the particular purpose of which is to add highlights to the head and hair. The kicker light is a variation of the backlight and is typically used for a glamour effect.
- in the writing of copy for advertisements, subheadline that actually appears above the headline for the copy.
a payment required by a mortgage in addition to normal principal and interest.
Example: Abel obtains a loan to purchase a retail store building. The lender requires a kicker equal to 10% of gross sales in excess of $100,000 per month, in addition to principal and interest.
