Interest expense and preferred dividends may be paid “in kind”, as described in more detail on our page dedicated to this topic. The percentages in our payment-in-kind (“PIK”) schedule near the bottom of the debt schedule specify the portion of total interest or dividends that are paid in kind. Setting up the schedule this way supports PIK interest/dividends ranging anywhere from 0% to 100% of total interest/dividends, and allows us to vary the PIK percentage over time. We generally assume there is no PIK interest, unless we have a specific reason for doing otherwise. PIK interest is more common in LBOs where the PIK feature can provide some relief from onerous debt service requirements that must be met with cash.