An equity kicker, or simply a 'kicker,' is a financial term used to describe an added benefit for investors, often taking the form of equity participation in a company, offered as an incentive to sweeten a debt transaction.
A kicker is an added feature of a debt obligation, usually designed to enhance marketability by offering the prospect of equity participation. Common examples include convertible bonds, rights, and warrants. Kicker features may also be found in mortgage loans where ownership participation or a percentage of gross rental receipts is included. Kickers are also known as sweeteners.
