The SPAC decks were recently cleared with three pricings last week and have immediately been replenished with three new filings. The first was CF Finance, then on Monday we had Monocle for $150 million, and now on Tuesday evening, Schultze Special Purpose Acquisiton Corp (SAMAU), also filed for a $150 million SPAC. Schultze (SAMAU), which is focusing on companies that have been financially restructured, is being sponsored by Schultze Asset Management, LP, an alternative investment management firm who’s strategy is based on the belief that distressed securities can often be purchased at discounts to intrinsic value given the complexities surrounding their restructuring.
Schultze Special Purpose Acquisition Corp. is being led by the eponymous George Schultze, as Chairman, CEO and President and is a well known figure in the distressed and bankruptcy investment industry having authored “The Art of Vulture Investing: Adventures in Distressed Securities Management“, and is also the founder of Schultze Asset Management, LP.
Looking at this SPAC’s structure, once again we see a 100% in trust, one share + one warrant deal, but with 18 months to find an acquisition. Further details below.
These terms feel to be the standard lately and reflect the current climate. The market is tight and there’s not a lot of wiggle room for SPACs so these terms feel appropriate. Plus, given that Schultze is focusing on companies that are post-restructuring, the Hostess deal with Gores-I immediately comes to mind. If you recall, the Gores team acquired Hostess four years post-bankruptcy when the company’s financial condition was in much better shape. That was a great deal. Since Schultze has made a career out of finding companies such as Hostess, a SPAC seems like a good fit.
One other quick note – this is the second time this week we’ve seen BTIG make an appearance on a SPAC – first on the CF Finance deal as qualified independent underwriter and now as one of the lead underwriters of Schultze. Keep an eye on them for the 2019 League Tables. They are part of a new crop of underwriters, such as BAML, Jefferies and Macquarie, that are making moves.
EarlyBirdCapital and BTIG are joint lead underwriting managers.
Greenberg Traurig, LLP and Graubard Miller are issuer’s counsel and underwriter’s counsel, respectively.
Cohen Circle Acquisition Corp. II (NASDAQ:CCIIU) announced the pricing of its $220 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “CCIIU”, Tuesday, July 1, 2025. The new SPAC plans to combine with a target company in the financial services technology (fintech) sector and fintech adjacent sectors that...
Indigo Acquisition Corp. (NASDAQ:INACU) announced the pricing of its $100 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “INACU”, Tuesday, July 1, 2025. The new SPAC plans to combine with an established, profitable company whose growth potential can benefit from its team’s expertise. Indigo’s management team is...
After a quiet June, July is set to be active throughout the month with nine de-SPACs and sponsors coming unlocked from their trading restrictions. This timing is most fortuitous for insurance investor Abacus Life (NASDAQ:ABL) and East Resources, which took it public in 2023, as it is the best performer of this group of companies...
Pyrophyte II (NYSE:PAII.U) has filed for a $175 million SPAC to dig for a natural resources target while the team’s first deal remains pending. The new SPAC is offering investors 1/2 warrants in each unit and it will have 24 months to complete a business combination without asking shareholders for an extension. It is the...
At the SPAC of Dawn The last day of the quarter is to play host to a pair of shareholder votes and a possible pricing of Indigo‘s (NASDAQ:INACU) $100 million IPO. This week is also to play host to fresh jobs numbers just before the long July 4 weekend. Black Hawk (NASDAQ:BKHA) was also one...