And the SPACs just keep coming….
The ARYA Sciences team dropped their latest SPAC this morning by filing ARYA Sciences Acquisition Corp. II (ARYBU), a $125 million SPAC focused on the healthcare sector. Once again, ARYA II will be sponsored by Perceptive Advisors, one of the most well known life sciences hedge funds. Futhermore, ARYA II will be led by Joseph Edelman, as Chairman, and Adam Stone as CEO and Director, both having previously led the first ARYA.
This latest SPAC is a near carbon copy of the first SPAC, which has nearly the same team (with the exception of one Director), same size ($125 million), same focus (healthcare in North America or Europe and specifically, life sciences and med tech), and same lead banker (Jefferies). Additionally, ARYA II will employ an “Indication of Interest” forward purchase of up to $25 million by the sponsor. Exact same as in ARYA I. However, what about the differences…
Notably, ARYA II has added Goldman Sachs to the cover, albeit to the right of Jefferies. Additionally, the terms have gotten a little better for this go-around, but keep in mind that the first ARYA is currently looking to close its combination with Immatics and the share price is currently trading at $10.85, so this should be a successful deal. That kind of result commands better terms.
As for the terms specifically, ARYA II will be asking this time for a 1/3 warrant, rather than the 1/2 warrant they had previously. Additionally, ARYA II will be a 24 months, $10.00 in trust (100%) SPAC, with the ability now to call the warrants for shares at $10.00 (in additional to cash or cashless exercise at $18.00).
On the whole, the terms aren’t that different if you line them up side by side. The main difference is the 1/3 vs. 1/2 warrant. However, again, this team has the very important SPAC experience, which is successful SPAC experience at that. As such, the terms fit.
This deal should have no trouble selling. They’re a team with a hot-hand and they’ll be looking in a currently favorable sector, in which this team has experience in spades. They could probably easily upsize, but if we look to their first SPAC for guidance, ARYA I did not upsize despite huge demand, so perhaps they’ll be following the same playbook. Look for ARYA II to price early June.
Summary of terms below:
The SPAC boom of 2020-2021 brought the asset class into sectors they had never entered before and that had generated few if any public companies of any kind. Space was one of these, but it appeared to be a passing fascination as soon as macro financial winds changed. That could be about to change once...
At the SPAC of Dawn As portions of the market rallied suddenly yesterday from Wednesday’s inflation gloom, LiveWire (NYSE:LVWR) was among the surprising gainers. The manufacturer of electric motorcycles that spun out from Harley Davidson in a 2022 SPAC deal with AEA-Bridges has never been among the flashiest EV de-SPACs, but it has quietly provided...
SPACs have brought a number of sustainability companies to market, but the economics of carbon credits have always been on the edge of those specific opportunities. Focus Impact Acquisition Corp. (NASDAQ:FIAC) aims to change that with its $213 million combination with DevvStream, a Canadian company focused on generating carbon credits with proprietary technology-based approaches. This week, we...
At the SPAC of Dawn Yesterday’s high CPI readings may have dampened hopes of summer rate cuts, but the public markets do seem increasingly content to shoot towards the cosmos in terms of the new types of companies they hope to welcome. SPACs have been a major part of commercial space ventures accessing public capital,...
In a surprise move, the NYSE has proposed a rule change to its listing standards to allow SPACs to continue listing up to an additional six months beyond the current 36. However, this is only if the SPAC has signed a definitive agreement prior to the 36 month deadline. As background, both the Nasdaq and...