medium · Debt Capital Markets
Which of the following scenarios would most likely trigger a 'mandatory' PIK toggle in a junior debt instrument?
- The borrower's liquidity falls below a pre-defined threshold in a 'pay-if-you-can' structure
- The borrower completes a successful equity IPO
- Market interest rates fall significantly below the note's cash coupon
- The issuer's credit rating is upgraded to investment grade
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More Debt Capital Markets practice
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