Fintech-Focused SPAC Far Point Acquisition Corporation to Begin Trading Tuesday
This evening, Far Point announced the pricing of their $550 million, Third Point sponsored SPAC. The unit will begin trading Tuesday morning under the symbol FPAC.U.
This deal was hot, hot, hot. It started as a $400 million IPO, was upsized to $500 million and finally, upsized again to $550 million tonight. As a side note, I was personally, slightly more excited about this SPAC than GS Acquisition. Not to say that I didn’t like GS Acquisition (I did), but if I had to choose between the two, I would choose Far Point. Why? Less conflicts of interest (GS had a laundry list of conflicts with Goldman and a non-compete with David Cote and Honeywell, which may or may not be significant, but they’re there….) and I think the sector focus of Far Point edges GS out – Fintech vs. Industrials, for GS. However, based on our SPACInsider Poll, I was in the minority (62.5% voted in favor of GS vs. 25.0% for Far Point, and 12.5% for neither).
Regardless, both are massive, high-profile SPAC deals with similar structures and I expect both to present A+ business combinations. (Anyone want to place any bets on which presents the better acquisition?) As a reminder, I’ve listed below the summary IPO terms, but you can also find them here.
Summary of terms are as follows:
- $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
Congratulations to the Underwriters – Credit Suisse and BofA Merrill Lynch as book-runners. Ellenoff Grossman & Schole LLP and Skadden, Arps, Slate, Meagher and Flom LLP, were Issuer’s and Underwriter’s Counsel, respectively.
Blue Ocean (NASDAQ:BOCN) provided significantly more texture today in the presentation for its $275 million combination with Asian digital media group TNL Mediagene, which it expects to hit profitability in the second half of the year despite a slight shakeup in financing for the transaction. The first big update in the first investor deck is...
At the SPAC of Dawn A brand new market may have just opened up for space de-SPACs as NASA administrator Bill Nelson announced a shift in the agency’s $11 billion program for a mission to return samples from Mars. Rather than rely on the agency’s internal technologies that would be predicted to get a sample...
Overall deal flow between SPACs and biotech firms has slowed over the last year, but some pending FDA changes could breathe new life into particular business models within the space. In particular, the FDA has asked Congress as part of its 2025 Legislative Proposals to eliminate the interchangeability designation for biosimilar medications, claiming the existing...
At the SPAC of Dawn Ever since Digital World announced its combination with Trump Media (NASDAQ:DJT) back in October 2021, it was clear that SPACworld and the Trump show were set to be intertwined for quite some time. And, although not every headline has a bearing on the wider SPAC world, Trump Media’s post-close rise...
AltC (NYSE:ALCC) has reportedly been taking the pitch deck for its combination with nuclear fission firm Oklo on the road in recent weeks, which has generated the rare result of a SPAC trading significantly above its trust value still well before completing its deal. The SPAC has an estimated $10.59 per share in its trust...