In May 2006, KDG entered a new 8.5-year PIK loan facility of E480m to finance the repayment of previous PIK notes. In a statement released at the time, KDG said that: "The PIK facility will not be callable for the first year, thereafter being callable at 102% of par in year 2, 101% of par in year 3 and 100% of par thereafter. Interest will be payable in the form of additional PIK loans (or cash at the option of the borrower) at the end of each interest period in arrears and on the date of any prepayment of the PIK loans."