Churchill Capital Corp. II (CCX.U), which filed a new S-1/A this morning, is expected to price their $400 million SPAC Thursday evening, for trading Friday, June 28th. Michael Klein, will once again be leading as Chairman of the Board of Directors along with his deep bench of “Operating Partners“.
Churchill II promises to be a heavily in demand deal, so there’s a real question of whether they up-size or not. If you recall, Churchill I, started at $400 million as well, and then increased their deal-size to $450 million. They then further up-sized to $600 million and subsequently did a full over-allotment to top out at $690 million. However, Churchill I’s day-one unit closing price was only $10.05. Up-sizes tend to suck the air out of the demand balloon and can impact day-one trading. However, given the success of Churchill’s combination with Clarivate, even if Churchill II does up-size, the unit should still out-perform Churchill I, as far as trading. Additionally, the trend has been for slightly smaller sized SPACs, so perhaps a more modest final gross proceeds raised is on the table.
There were no changes to the terms, however, the symbols have now been added (CCX.U, CCX, and CCX.WS). Additionally, B. Riley FBR has been added to the cover as a co-manager.
This SPAC (when priced) will make it number 28 for 2019’s year-to-date count and push total gross proceeds to $6.6 billion, assuming no up-sizes.
Summary of terms below:
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