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.
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...
At the SPAC of Dawn Tucked into the bill that provides $95 billion in funding to American allies passed by the House this weekend is another measure that is likely to have far more impact on at least one pending deal in SPAC world. It would appear that the timing was fortuitous for TikTok rival...
With the passage this weekend of $95 billion in funding for Ukraine, Israel and Taiwan by the House of Representatives, some focus has gone back towards the defense sector, which has generally had a good year as a whole. But, SPACs have not been as active in defense, despite the fact that companies in the...
At the SPAC of Dawn As April’s sleepy month for SPAC news continues, there is only one special meeting on the docket to consider a SPAC deal approval, that being today’s vote on Pegasus Digital Mobility‘s (NYSE:PGSS) combination with equipment manufacturer Schmid. Three more SPACs are facing extension votes this week, including Pyrophyte (NYSE:PHYT), whose...
Terms Tracker for the Week Ending April 19, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Passover and school spring break starts next week, which most likely means a slowdown in SPAC filing activity. Although Churchill IX is now rumored to...