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.