After the Closing Bell: Two New 1/4 Warrant SPACs
by Kristi Marvin on 2020-03-06 at 5:58pm

 


The stock market may have taken a beating this week, but SPACs just keeping pumping out 1/4 warrant deals.

Read below for a short summary of the latest two new IPOs that were filed tonight. 


FORTRESS VALUE ACQUISITIONS CORP. (FVAC.U)

Fortress Value Acquisition Corp. (FVAC.U), the Fortress Investment Group-sponsored SPAC, filed their S-1 early this afternoon for a $300 million IPO and naturally, this is another 1/4 warrant deal. However, it’s got a few extra bells and whistles thrown in, such as the ability to call their warrants at $10.00 for shares, in addition to cash and cashless exercise.  Additionally this is a 24 month SPAC, but they can extend to 27 months if they have an LOI or definitive agreement on file. And of course there is also the currently fashionable term where the SPAC can remove earned interest to fund their working capital.  In Fortress Value’s case, they can remove $750,000 per year, or $0.025 per year. Although, if interest rates keep going lower, that might eventually be the entirety of the interest earned on the trust.

Deutsche Bank, Morgan Stanley and RBC Capital Markets will be underwriting.


CC NEUBERGER PRINCIPAL HOLDINGS I (PCPL.U)

CC Neuberger Principal Holdings I (PCPL.U), also a $300 million SPAC, will be sponsored by both CC Capital (Chinh Chu’s firm) and Neuberger Berman Investment Advisers LLC. Hence, the name “CC Neuberger”.  And just like Fortress Value, it’s also a 1/4 warrant SPAC.  Additionally, CC Neuberger has 24 months to find an acquisition (no extra three months).

Nonetheless, whereas Fortress Value is purchasing their at-risk warrants at $2.00, CC Neuberger is purchasing their at-risk warrants at $1.00, similar to Churchill III. However, CC Neuberger will not be dipping into the interest to fund their working capital.  Furthermore, CC Neuberger can also call their public warrants at $10.00 for shares, as is commonplace with the tier-1 SPACs, in addition to cash and cashless exercise.

Lastly, there is a $200 million forward purchase agreement for this deal with Neuberger Berman, and while the FPA is for 200 million units at $10.00, that unit will be comprised of one Class A ordinary share and three-sixteenths of one warrant….just to see if anyone can still do fractions anymore.

Goldman Sachs and BofA Securities will be joint book-running.


Look for longer write-ups next week after I’ve had a chance to read through both prospectuses.

 

Recent Posts
by Nicholas Alan Clayton on 2024-03-28 at 1:35pm

News and Rumors PR: Bannix (NASDAQ:BNIX) has provided more information on the combination with VisionWave that it announced yesterday, specifying that the imaging technology that VisionWave will acquire from GBT Technologies will primarily seek out applications in military combat scenarios and geological surveys. PR: Grove Collaborative (NYSE:GROV), which combined with Virgin Group II in June...

by Nicholas Alan Clayton on 2024-03-28 at 7:47am

At the SPAC of Dawn Fed Chair Jerome Powell has given new hints that the administration would be showing greater levels of comfort with inflation if a cut could help improve unemployment numbers. Those numbers could get an update today at 8:30 am ET to bring new jobless claims as well as final prices for...

by Nicholas Alan Clayton on 2024-03-27 at 1:31pm

News and Rumors CNBC: Former WeWork (OTC Pink:WEWKQ) founder Adam Neumann has offered to buy back control of the company for $500 million but has yet to secure the necessary financing. WeWork went public with BowX in October 2021. PR: Satellite telecom firm Spire Global (NYSE:SPIR) has signed an agreement to build and launch two...

by Nicholas Alan Clayton on 2024-03-27 at 11:38am

Bannix (NASDAQ:BNIX) has entered into a definitive agreement to combine with VisionWave Technologies for $30 million. The combined company is expected to trade on the Nasdaq once the deal is completed with an initial outside date of September 14. Transaction Overview Bannix has about $17 million in its trust after seeing 77.4% of its shares...

by Nicholas Alan Clayton on 2024-03-27 at 7:33am

At the SPAC of Dawn Much of the attention yesterday was on tracking the swings of the newly-completed Trump Media (NASDAQ:DJT) deal with the FT going as far to suggest it may “make SPACs great again.” Not all of the day’s data points were on the positive side of the ledger, however. IB Acquisition Corp....

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved