A loan in which the debtor is not required to make any payments to the creditor between the time the money is borrowed and the maturity or refinancing date. Such loans are made primarily by CLO funds in the course of mergers and acquisitions. – See balloon loan, leveraged buyout, pay-in-kind bond, second-lien loan, Toogle debt, twenty-two-eight loan. – Cf. ECB Monthly Bulletin, December 2006, p. 46 (dangers of this type of financing).
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