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.
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...