FEDERAL STREET CONVENES MEETING, THEN ADJOURNS WITHOUT CONDUCTING ANY BUSINESS.
Federal Street Acquisition Corp. (FSAC), which was supposed to hold it’s shareholder vote this morning to approve their business combination with Universal Hospital Services, Inc. (“UHS”), announced today that they will be adjourning the meeting to November 14th.
Furthermore, the press release states, “The purpose of the adjournment is to allow FSAC more time to market the business combination between FSAC and UHS following recent volatility in the stock market.“
In layman’s terms – they were probably looking at way too many redemptions. Yet, Federal Street is only pushing the vote out two weeks, which seems like a very tight window to turn this vote around. Especially given that they have until July 2019 to complete a transaction. However, Federal Street is partially funding the transaction via a $250.0 PIPE with certain institutional investors and THL Agiliti. Plus, FSAC has entered into new debt commitments via a term loan of $660 million to repay existing UHS indebtedness. I’m sure nobody wants to wait…
Stay tuned for further information when available.