LF Capital Files a New S-1 and Increases % Held in Trust
by Kristi Marvin on 2018-06-18 at 11:37am

LF Capital Getting Closer to IPO with a Tweak to Its Structure

LF Capital Acquisition Corp., a SPAC focused on the Fintech sector, filed another amended S-1 this morning. Of note, the pro rata percentage held in trust jumped a percentage point from 101% to 102%.  This means $10.20 per share is now held in the trust account in the event of redemption, conversion or liquidation.

To reach 102%, the Sponsors over-funded the trust by increasing the purchase of private placement warrants by $1,350,000.  Originally, the purchase was 5,600,000 warrants at $1.00 and now 6,950,000 warrants (assuming no over-allotment is exercised).

The increase in amount held in trust is not surprising.  SPAC institutional investors are going to want a little something extra now that BlackRock Funds has signed on as a Sponsor/Anchor Investor and in order to get them to hold a position for potentially 24 months with a business combination pretty much guaranteed, a little sweetener was required.  A 2.0% return is a nice way to start.

Additional note: LF Capital could potentially price this week. Stay tuned for more details.

 

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