Convertible Notes

LinQ has an extensive track record of sourcing, structuring and managing structured debt instruments which combine the capital preservation feature of a debt instrument with the investment upside from equity linked components. The Team has built up a reputation as market leader of introducing the investment structure to a new segment of the market in a specialist industry.

Specifically with regard to their application in the resources sector, the distinct features of the typical types of structured instruments are designed to manage the risk return profile of the investment in light of the development stage of the resource asset/project.

Typical Life Cycle and Risk Returns of a mining project

Some of the more commonly structured instruments include:

  • Convertible Notes (Exploration/Scoping)
  • Debt with Options/warrants (Exploration/Scoping)
  • Offtake Financing (Pre-Feasibility/Feasibility)
  • Royalty Financing Agreements (Feasibility)
  • Bridging and Mezzanine Financing (Development/Production)
  • Gold / Commodity loans (Production)
  • Refinancing (Production/Expansion)

Some key advantages of Convertible Note instruments over alternative sources of capital include:

  • Additional source of capital complementing traditional bank debt and equity capital
  • Generally offers a higher level of flexibility compared to traditional debt financing
  • Modular Risk and Return profile compared to bank loans and straight equity by adjusting preferred levels of security and equity component

Key benefits of our Convertible Notes expertise and capabilities include:

  • Extended and consistent track record of successfully structuring and managing Convertible Note instruments
  • Granular understanding of documentation and execution process
  • Established framework of professional service providers including legal counsel, tax, accounting as well as mining technical to facilitate and expedite deal execution
  • Access to a sophisticated investor base actively seeking LinQ structured instruments   

Our track record (selected Convertible Notes tombstones)