mətʃˈʊɹɹᵻɾiz jˈuːʒuːəli ɛksˈiːd fˈaɪv jˈɪɹz ænd ðə pˌiːˌaɪkˈeɪ jˈuːʒuːəli kˈæɹiz ɐ dɪtˈætʃəbəl wˈɔːɹənt—ðə ɹˈaɪt tə pˈɜːtʃɪs ɐ sˈɜːʔn̩ nˈʌmbɚɹ ʌv ʃˈɛɹz ʌv stˈɑːk ɔːɹ bˈɑːndz æɾə ɡˈɪvən pɹˈaɪs fɚɹə sˈɜːʔn̩ pˈiəɹɪəd ʌv tˈaɪm—ɔːɹ ɐnˈʌðɚ mˈɛkənˌɪzəm ðæt ɐlˈaʊ ðə lˈɛndɚ tə ʃˈɛɹ ɪnðə fjˈuːtʃɚ səksˈɛs ʌvðə bˈɪznəs.
Maturities usually exceed five years and the PIK usually carries a detachable warrant—the right to purchase a certain number of shares of stock or bonds at a given price for a certain period of time—or another mechanism that allow the lender to share in the future success of the business.