Dan Loeb’s Third Point LLC Debuts New SPAC: Far Point Acquisition Corporation
Third Point LLC, makes its entry into the Special Purpose Acquisition Company field with Far Point Acquisition Corporation, a $400 million IPO focusing on the Fintech space. Far Point will be led by Tom Farley, former President of the NYSE, and David Bonnano, a Managing Director at Third Point LLC.
Summary terms include:
- $10.00 unit comprised of one share of Class A common Stock and one-third of a full warrant
- 100% held in trust ($10.00 per share)
- 24 months to announce an acquisition (+ 3 month extension with LOI)
- Warrant Redemption Price: $18.00
- Redemption Rights: limitation of 15% of the shares sold in the IPO
- Sponsored by Far Point LLC, an affiliate of Third Point LLC
- Underwriter fees: 2.0% + 3.5% deferred fee
Additionally, the sponsor (Third Point) has entered into a Forward Purchase Agreement at $9.50 per forward purchase share. The amount of forward purchase shares is capped at the amount of redeeming shares over 20 million (half of the IPO), or essentially $200 million.
In summary, this is a nice feather in the cap for Credit Suisse and BofA Merrill Lynch and a well structured deal. The built-in three month extension removes the dreaded “extension proxy vote” where shareholders can redeem plus, the (potentially) size-able backstop gives any target companies confidence in the cash amount in trust. Furthermore, there is the name and track record of Third Point, one of the top performing hedge funds of the past two decades.
While it remains to be seen how target companies respond to an acquisition offer from a SPAC sponsored by an activist fund, this one still looks like a winner. The IPO should have no problems with marketing.
Finally, Issuer’s Counsel and Underwriter’s Counsel are Ellenoff Grossman & Schole LLP and Skadden, Arps, Slate, Meagher & Flom LLP, respectively. These two law firms are arguably the most experienced in representing SPAC transactions and consistently lead in the Legal League Tables. Far Point is well represented on all fronts.
Tariffs, Trade Routes, and Tech: Freightos’ View from the Cargo Frontlines 2025 is shaping up to be a wild year for global trade, and few companies have a vantage point on the impacts of every-changing tariff policy quite like digital cargo-booking platform Freightos (NASDAQ:CRGO). This week, we catch up with Freightos CEO Zvi Schreiber. He shares...
NMP (NASDAQ:NMPU) has filed for a $100 million SPAC to conduct a broad search for a target, leveraging its team’s past consultancy work. The new SPAC’s units are set to contain one right to a 1/5 share. That is more generous to investors than the unit structure for Maxim Group’s other new SPAC filing this...
At the SPAC of Dawn Futures are green ahead of the Fed Chair Jerome Powell’s highly anticipated press conference at 2:30 pm ET today following two days of Federal Reserve meetings. Several other Fed members are expected to speak on Friday, but any news on rate changes is likely to come out of today’s speech,...
Dune Acquisition Corporation II (NASDAQ:IPODU) announced the pricing of its $125 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “IPODU”, Wednesday, May 7, 2025. The new SPAC aims expects to conduct a broad search for a combination target, but is interested in companies that are in the...
Oyster Enterprises II (NASDAQ:OYSEU) has filed for a $200 million SPAC to pursue a broad investment thesis, but one informed by the way that AI is shaking up industries. The new SPAC has units each containing one right to a 1/10 share and it will have 24 months to initially complete a business combination without...