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.
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.