Monday evening, we had another new SPAC IPO filing, this time from serial SPAC issuer Daniel Hennessy. Hennessy Capital Acquisition Corp. IV (HCACU), will be focusing on industrial, infrastructure solutions and value-added distribution sectors in the United States and plans to raise $250 million. The eponymous Daniel J. Hennessy, will be leading as Chairman and CEO, while Greg Ethridge (most recently, President of Matlin & Partners Acquisition Corp.), will be in the role of President and COO.
For reference, below is a table showing the first three Hennessy SPACs and their business combinations.
| Size (mms) | Target | Symbol | Current Share Price |
|
|---|---|---|---|---|
| Hennessy I | $100 | Blue Bird Corp. | BLBD | $18.01 |
| Hennessy II | $175 | Daseke, Inc. | DSKE | $4.36 |
| Hennessy III | $225 | NRC Group Holdings Corp. | NRCG | $9.21 |
Looking at this SPAC’s structure (scroll down), we have a lot of “extras”. We see an Anchor Investor (Blackrock for $32.5M), a Forward Purchase (Nomura for $125M), and the Crescent Term to boot (threshold of $9.20). However, you will also notice that this is a 101% in trust deal ($10.10 per share) and there is 3/4 warrant included in the unit. Plus, it has an 18-month life. Notably, these terms are nearly the same exact terms Hennessy III went out with and it appears that is what the Hennessy team is most comfortable marketing. (For reference, I looked up Hennessy III and their terms were: 18 months, 101% and 3/4 warrant, but no Forward Purchase or Anchor Investor.)
However, Hennessy III used Credit Suisse and Stifel as their underwriters, whereas Hennessy IV is using Nomura, Stifel and I-Bankers. This is Stifel’s second appearance on a SPAC this year, having recently been an underwriter in the RMG Acquisition Corp. deal. But the real surprise was Nomura. This is Nomura’s first SPAC as an underwriter, so we’ve got another competitor for the League Tables this year!
All told, these terms are sell-able. The 3/4 of a warrant always seems a little wonky, mostly because we are creatures of habit and have gotten so used to using the standard 1, 1/2 or a 1/3 that you throw a 3/4 in there and you actually have to think about it now. But hey, whatever sells…
Summary of terms below:
Nomura and Stifel are joint book-running managers. I-Bankers Securities, Inc. is co-manager.
Ellenoff Grossman & Schole LLP and Skadden, Arps, Slate, Meagher & Flom LLP are issuer’s counsel and underwriter’s counsel, respectively.
Cayson Acquisition Corp. (NASDAQ:CAPN) has entered into a definitive agreement to combine with boutique investment firm Mango Financial for $300 million in equity consideration. Hong Kong-based Mango provides a range of M&A and equity capital markets advisory services to clients considering listings in China and the US. The combined company is expected to trade on...
Trailblazer (NASDAQ:BLZRU) has filed for a $200 million SPAC to bring a first-time team to market with serial sponsor terms. The new SPAC is offering investors a 1/3 warrant in each unit and it is the first SPAC filed so far this month with 24 months on its initial transaction clock. All other July SPACs...
This week, we speak with Kyivstar CEO Oleksandr Komarov about the company’s $2.2 billion dollar combination with Cohen Circle Acquisition Corp. I (NASDAQ:CCIR). Few companies have been had to forge themselves in the flames recently quite like Ukraine’s leading telecom and digital services provider Kyivstar. Now, Kyivstar is not only telling that story but pitching it to...
At the SPAC of Dawn The market still has one full trading session before it adds Tuesday’s Core CPI reading and a variety of Fed comments to messaging it is already ingesting on US President Donald Trump’s ever-shifting tariff policy. SPACs are meanwhile continuing on with business as usual, with Cayson (NASDAQ:CAPN) announcing the third...
Terms Tracker for the Week Ending July 11, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. One more IPO priced this week bringing July’s total to 8. However, there are still three more weeks left in the month so that number...