Far Point Upsizes SPAC to $500 Million

spac ipos

Far Point Upsizes SPAC to $500 Million

Jun 6, 2018 INTEL by Kristi Marvin

Far Point Acquisition Corporation Files for $400 Million $500 Million IPO

Far Point Acquisition Corp, the Third Point LLC sponsored Fintech SPAC, filed an amended S-1 today, upsizing the deal to $500 million.  Previous filings indicated an IPO of $400 million.

Upsizing an IPO 25% signals a tremendous amount of demand already, although this is unsurprising given the high profile nature of this SPAC.  Far Point should price next week, right behind GS Acquisition Holdings Corp.  Below is a reminder of Far Point’s summary terms.

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
  • Forward Purchase Agreement: capped at the amount of redeeming shares over 20 million (40% of the IPO)
  • Underwriter fees: 2.0% + 3.5% deferred fee

 

ByKristi Marvin