kicker

Advantage or benefit demanded by a lender, or offered by a borrower, to 'sweeten' a loan deal. In real estate loans, for example, a lender may be offered (in addition to interest on the loan) a share in the total income (if it exceeds a certain amount) from the property being financed. In consumer loans law, it is often required that the kicker is disclosed by the lender as part of the finance charges and is illegal in certain jurisdictions. In security-issues, an 'equity kicker' allows a bondholder to convert the bond into common stock (ordinary shares) if the stock value exceeds a certain level. Thus the bondholder receives an equity-security in addition to the interest on the bond.