ɪf ðɪ ɐkwˈaɪɚd kˈʌmpəni pɚfˈɔːɹmz wˈɛl, ðə pˌiːˌaɪkˈeɪ tˈɑːɡəl fˈiːtʃɚɹ ɐlˈaʊz ðɪ ˈɛkwᵻɾi spˈɑːnsɚ tʊ ɐvˈɔɪd ɡˈɪvɪŋ ɛkstɹˈoːɹdɪnˌɛɹi ɹᵻtˈɜːnz tə ðə pˌiːˌaɪkˈeɪ dˈɛt, wˌɪtʃ mˌaɪt hˈæpən ɪf ðə dˈɛt wɜː stɹˈɪktli pˌiːˌaɪkˈeɪ.
If the acquired company performs well, the PIK toggle feature allows the equity sponsor to avoid giving extraordinary returns to the PIK debt, which might happen if the debt were strictly PIK.