ASX Today, page-44568

You’ll find the answers to your doubts and queries in the links you’ve provided

https://announcements.asx.com.au/asxpdf/20240702/pdf/0655lybd50tx26.pdf

LGES is a friendly offtaker because they have agreed to collaborate in downstream possibilities:

“a downstream collaboration agreement to investigate the feasibility of establishing an Inflation Reduction Act (IRA)-compliant conversion plant to process LGEnergy Solution offtake material and potential additional tonnes from any future 4Mtpa expansion.”

And just to avoid JRSelvedge’s typical comments about due diligences (oh, Lord, they read the books and went away!!!!! ... Apparently JRSelvedge was the only direct witness of Albermarle's withdrawal):

“The long-term partnership with LG Energy Solution follows an extensive due diligence process, further reinforcing the tier-one qualities of Kathleen Valley and reflecting Liontown’s position as an emerging producer of high quality, fully IRA-compliant, lithium raw materials”

So LGES knows who is collaborating with.

I agree with @dynofish about the real meaning of a security on these convertible notes.They are a legal must to reduce financial risk. The benefit to the borrower (LTR) is that the interest to be paid on the capital is lower (SOFR) than in the case of unsecured notes. The benefit to the lender is that they have rights over business assets if the note cannot be paid back.
So no, @JRSelvedge, your imagination is again far from reality. If LGES would have considered LTR a highly risky business they won't get involved in the convertible notes, an extension on the off-take and a collaborative study on downstream facilities.

Anyway, LGES has explicitly agreed with LTR on the terms of payments as follows:

Interest

Within first 2 years, interest may be capitalised and added to the principal or paid by way of an issuance of shares at the prevailing market price at the time, at the Issuer's election.

After first 2 years, interest is to be paid in cash to the extent that the Issuer has Available Cash (Available Cash is the amount of the consolidated group cash and cash equivalents on the relevant interest payment date above a specified threshold).Any balance of interest not paid in cash to be paid by way of an issuance of shares at the prevailing market price at the time. (Again, The Issuer, not the Noteholder decides to pay in cash or by new shares depending on its Available Cash).

Principal

The Noteholder may elect to convert the Notes into Shares at any time after the

date that is 6 months after the Issue Date, up until the date that is 5 Business

Days prior to the Maturity Date. The restriction on conversion in the first 6

months does not apply if there is a change of control proposal during that period.

The Noteholder must convert a minimum of 50m Notes (or less if all Notes are

being converted)

So, @fooca, I have to apologise because I mixed things: I was right only about the payment of interests, that can be transformed into new equity, but not at 1,80 AUD but at the market price at the time.
In the case of principal, LTR has to paid the whole amount in 5 years, but only if LGES has decided to not convert the debt into shares before that date. In the case of the principal, is the lender/Noteholder who has the right to transform the debt into equity. I was wrong on that.
But LTR has 5 years (FIVE: July 2029) to develop the business and save A$379 millions. Or less if LGES has converted part of the debt into shares before. And LTR can go into further debt at that point to cancel out the remaining of this one, as many running companies do.