Hennessy Capital Locks up Business Combination

HCAC releases results of shareholder vote

Hennessy Capital Locks up Business Combination

Aug 30, 2018 INTEL by SPACInsider

Hennessy Capital Acquisition Corp. III, announced this morning that they have secured capital commitments to the tune of $85 million, thereby securing the necessary financing to complete their business combination with NRC Group.

Hennessy’s current redemption price is $10.19 and that’s exactly where the share traded to this morning, which is a good place to start before the team hits the road and starts marketing.

The transaction is anticipated to close some time in October of this year.

Details:

The $85 million is mix of common and convertible preferred:

  • $62.0 million of shares of the Company’s 7.00% Series A Convertible Preferred Stock at a cash purchase price of $100.00 per share (initial conversion price of $12.50 per share, or eight common shares for every preferred)
  • $23.0 million of shares of the Company’s common stock at a cash purchase price of $10.25 per share.

However, it should be noted that for the financing, there is a $750,000 closing fee to be paid to the subscriber, Cyrus Capital Partners, L.P., which subscribed for both 530,000 shares of the Company’s 7.00% Series A Convertible Cumulative Preferred Stock and 1,463,415 shares of the Company’s common stock (at a price of $10.25 per share of Common Stock).

Cyrus represents $68 million of the total $85 million and the remainder would appear to be Nomura’s backstop investment ($9 million convertible preferred + $8 million common stock)

Credit Suisse, Stifel and Nomura Securities acted as joint private placement agents in connection with the subscription agreements.

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