SPACs…the Final Frontier? (For the Quarter at Least)
Apologies for the Star Trek quote, but every time I hear “New Frontier,” its all I can think of…
New Frontier Corp., just filed their CERT, so as widely expected, this SPAC will be pricing their up-sized $230 million IPO tonight for trading Thursday. The real question is, will there be another surprise up-size?
As a reminder for all of you non-bankers or lawyers out there, you can up-size (or down-size) a deal 20% without having to re-submit a new filing. Thanks Rule 462(b)!
New Frontier, which is focused on healthcare, technology or education sectors in China, which they refer to as the “Chinese new economy sectors,” is being led by Antony Leung and Carl Wu. The team has an impressive background and this should be a hot deal.
As previously mentioned, this SPAC has an Anchor Investor and a Forward Purchase agreement which you can catch up on here. Plus, there is the new “Indications of Interest” to the tune of $90 million.
For reference, we’ve added the summary of deal terms below:
Summary of terms:
- Focus: Healthcare, technology or education sectors in China (Chinese New Economy)
- $10.00 unit comprised of one Class A Ordinary Share, 1/2 warrant
- Warrant redemption threshold: equals or exceeds $18.00 (cash or cashless exercise)
- 100% held in trust ($10.00 per share)
- 24 months to complete an acquisition
- Limitation on redemption rights: 20% or more
- Underwriters: Credit Suisse, UBS. I-Bankers as co-manager.
At the SPAC of Dawn After a tepid month for SPAC activity in April, prominent teams are already scheduling things to make for some fireworks in early May. AltC (NYSE:ALCC) has already been turning heads as being the rare SPAC to trade significantly above trust value before close, and it has now booked the completion...
At the SPAC of Dawn There are signs that the macro environment for SPACs is gradually improving, but the Screaming Eagle team yesterday announced a non-redemption agreement for its combination with Lionsgate Studios. Such agreements are generally a lever one pulls when a SPAC expects a potentially turbulent closing. All in all, the terms for...
Israeli tech firms have made up an outsized proportion of SPAC activity and despite the ongoing tensions in its region, that dealmaking is continuing unabated. In fact, the SPAC named for the particular mission of taking Israeli firms public through SPACs, Israel Acquisition Corp. (NASDAQ:ISRL) in fact just took one step closer in completing that...
At the SPAC of Dawn Although the market has largely recovered from a negative stretch last week, the roller coaster is tilted back downward for Trump Media (NASDAQ:DJT), which slid -8% yesterday to $32.57 – one of its lowest points since closing with Digital World last month. Other SPACs and de-SPACs are having a more...
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...