Third Eye Capital
Tel: (416) 601-2270
Fax: (416) 981-3393
Email Third Eye Capital

Brookfield Place
Bay Wellington Tower
181 Bay Street, Suite 2830
Toronto, Ontario, M5J 2T3

Investment Criteria

Investment Criteria

Third Eye Capital offers innovative financing solutions to private and public borrowers, across different industries, in many types of businesses, and that are experiencing various situations.

While each opportunity is unique, Third Eye Capital looks for companies that possess the following attributes:

Valuable Asset Collateral
Senior liens on self-liquidating working capital assets and critical business assets with realizable liquidation values, even if those assets are not obvious or visible to other lenders or investors.

Proven Business Model
Sound business strategy with known product demand and capacity for existing or future cash flow generation to limit default risk.

Strong Management
Experienced management teams committed to business and aligned through personal risk and ownership.

Stakeholder Support
Strong customer, supplier, employee, creditor, and shareholder relationships.

Multiple Exits
Wide range of deleveraging or exit options not dependent on refinancing, collateral realization, or liquidation

Our financing terms are tailored to match your unique situation:

Type
Debt: Revolving and term loans, delayed draw-down loans, standby/backstop facilities, DIP/interim financing

Equity: Preferred shares

Sponsorship
Debt: Non-sponsored lending where we can reduce dilution and add strategic and financial value.

Equity: Preferred share investments in no/low leveraged companies.

Size
Debt: $20 Million to $300 Million on a direct basis with no syndication risk. Will anchor larger debt financings under certain circumstances.

Equity: $5 Million to $100 Million in preferred securities with board representation

Covenants
Debt: Financial maintenance covenants and operational KPIs depending on situation.

Equity: Normal and customary.

Maturity/Term
Debt: Demand or committed up to 5 years

Equity: Preferred shares with put/call features or redeemable up to 5 years

Geography
Primarily Canada. United States depending on situation.

Payments
Debt: Interest only, flexible payment schedules including free cash flow sweeps or event-driven amortization.

Equity: Dividends that can be accumulated.

Financial Condition
Debt: Growth, turnaround, distress, bankruptcy/restructuring. Highly leveraged situations okay where there is sufficient asset coverage.

Equity: Growth and turnaround. No/low leveraged situations only.

Collateral
Debt: Key assets critical to business operations with strong consideration given to “hard to see” assets such as mineral reserves and resources, patents, software code, rights and licenses, customer lists, and contracts.

Equity: Not applicable.

Preferred Industries
Energy, alternative energy, metals and mining, software and technology, consumer products and retail/e-commerce, construction services, transportation and logistics, and business services
We do not invest in real-estate development, personal or individual loans, or in businesses involved in pornography, tobacco, cannabis, or weapons and munitions.

Lien Priority
Debt: Senior secured, stretch, second lien, 1st lien with stretch or unitranche.

Equity: Preferred above common and management shareholders.

Use of Proceeds
Working capital, acquisitions, market or product expansion, innovation and R&D, refinancings, recapitalizations, bankruptcy/receivership/restructuring financing.
We believe in investing for the purposes of increasing a company’s value and therefore do not finance strictly for the purpose of funding dividends or buying back shareholder stock.

Domestic (Canadian) Advisor registration form:

If you are an advisor that distributes or is interested in distributing a fund advised by Third Eye Capital Management Inc. you can register to request a call or meeting. You will be asked to provide information to confirm your qualifications to invest in or distribute the funds. This brief registration process allows us to conform to applicable securities laws and to obtain some basic information about you. Once we have qualified and approved your registration, we will get in contact with you to schedule a meeting.

    Personal Information

    I consent to receive information from Third Eye Capital.

    Domestic (Canadian) Investor registration form:

    If you are an existing or prospective accredited investor that distributes or is interested in distributing a fund advised by Third Eye Capital Management Inc. you can register to request a call or meeting. You will be asked to provide information to confirm your qualifications to invest in or distribute the funds. This brief registration process allows us to conform to applicable securities laws and to obtain some basic information about you. Once we have qualified and approved your registration, we will get in contact with you to schedule a meeting.

      Personal Information

      YesNo
      I consent to receive information from Third Eye Capital.

      International Investor registration form:

      For US persons
      If you are an existing or prospective accredited investor or an advisor that distributes or is interested in distributing a fund advised by Third Eye Capital Management Inc. you can register to request a call or meeting. You will be asked to provide information to confirm your qualifications to invest in or distribute the funds. This brief registration process allows us to conform to applicable securities laws and to obtain some basic information about you. Once we have qualified and approved your registration, we will get in contact with you to schedule a meeting.

        Personal Information

        I consent to receive information from Third Eye Capital.

        Address Information

        Investor Information

        An IndividualA Company
        U.S.Other (specify)
        Fund of FundsFamily OfficeBankOther (specify)
        $

        Instructions for the following sections: Individuals please answer Part A of Sections I and II; Institutions please have an authorized person answer Part B of Sections I and II.

        Section I - Accredited Investor Threshold Questions:

        Part A - For Individuals:

        1. I certify that I have an individual net worth, or my spouse and I have a combined net worth in excess of $1,000,000.

        2. I certify that I am highly a sophisticated investor who routinely invests sums of $250,000 or more.

        Part B - For Institutions:

        1. The submitter certifies that it is a bank, insurance company, registered investment company, business development company, or small business investment company.

        2. The submitter certifies that it is a charitable organization, corporation or partnership with assets exceeding $5 million, and that was not formed to invest the Fund.

        3. The submitter certifies that it is a corporation, partnership or trust with assets of at least $5 million, that was not formed to invest in the Fund, and whose purchases are directed by a sophisticated person.

        4. The undersigned certifies that all of its equity owners are “accredited investors” as defined in United States Securities and Exchange Commission Rule 501(a) and who can satisfy the higher criteria for the same set forth in Section I, Part A above.

        Section II - Qualified Purchaser Questions:

        Part A - For Individuals:

        1. I certify that I own not less than $1,000,000 in securities investments.

        Part B - For Institutions:

        1. The undersigned certifies that it is a bank, insurance company, registered investment company, business development company, or small business investment company

        2. The undersigned certifies that it is a "family owned company" (as defined below) that owns not less than $5,000,000 in securities investments. A "family owned company" is defined as a company that is owned directly or indirectly by or for two or more natural persons who are related as siblings or spouse (including former spouses), or direct lineal descendents by birth or adoption, spouses of such persons, the estate of such persons, or foundations, charitable organizations, or trust established by or for the benefit of such persons

        3. The undersigned certifies that it is a trust that was not formed to invest in the Fund, the trustee or decision-making authority of which, and every person contributing assets to the same, is a “Qualified Purchaser” under one of the other definitions of this Section

        4. The undersigned certifies that it is a person acting for its own account or for the accounts of other Qualified Purchasers who in the aggregate own and invest on a discretionary basis at least $5,000,000 in securities investments.

        Questionnaire Submission:

        Thank you for your patience in completing this questionnaire.

        If you have any questions, please contact Chris Vokes, VP of Investor Relations at Third Eye Capital:

        T 416-601-2270 ext 242
        E chris@thirdeyecapital.com