Trinity Merger Corp. Prices $300 Million IPO
by Kristi Marvin on 2018-05-15 at 10:20am

Trinity Merger Corp. Priced Their $300 Million IPO, But Did You Catch the Change to the Terms?

This morning, Trinity Merger Corp. announced the pricing of their $300 million real estate focused SPAC and the unit should begin trading later this morning under the symbol TMCXU.  However, there was an important change in the prospectus…the percentage of cash held in trust jumped to 102% from the originally filed 100%.

This means $10.20 per share is now held in the trust account in the event of liquidation.  To reach 102% The sponsor over-funded the trust by purchasing $11 million of private placement warrants. This is an increase of $3 million from the originally stated $8 million purchase amount needed for the SPAC to get to 100%. That’s a lot of skin in the game.

From an investor’s perspective, this a very attractive deal since not only is the trust over-funded, but the unit is one common and one full warrant.  We can only speculate that marketing must have been a little more challenging than originally anticipated to necessitate a jump to 102%.  It should be interesting to see if a partial or full over-allotment is exercised.

Congratulations to Trinity and to B.Riley FBR, who was the sole bookrunning underwriter.

 

 

 

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