Kayne Anderson Acquisition Corp. (KAAC) announced the results tonight of their shareholder vote to approve their business combination with Apache to form Altus Midstream. In short, KAAC’s combination was approved, but once again, there were a surprising number of redemptions for an A-team. It’s been a tough month for SPAC votes.
Per the press release, 29,469,858 shares redeemed, however, KAAC did not provide a per share redemption price or the total value of the redemptions. Yet, if you use the illustrative redemption price that KAAC provides in their proxy of $10.09 per share (unfortunately this is based on trust values from June 30th) that means approximately $297.4 million was redeemed from the trust. Although, that amount is likely to be a few million higher due to additional interest earned – more like $300 million.
However, if you check their most recent 10-Q (again, unfortunately as of June 30, 2018) there was $380.7 million held in trust and 36,156,709 shares were subject to redemption. So, using the conservative figure of $297.4 million that was estimated redeemed, KAAC was left with $83.3 million, before deferred underwriting fees, taxes, etc. That’s a lot less than both Kayne and Apache were hoping for.
Once KAAC files their new 10-Q, we should be able to get a little more clarity on the specifics.