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.
AI has quietly been creeping to the top of the buzziest sectors for SPAC deals, but it’s become host to an even larger arms race in the private funding market. Elon Musk is currently pushing a $6 billion capital raise for his OpenAI competitor xAI at a valuation of $18 billion, according to TechCrunch, while...
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...