Earlier today, Bill Ackman and Pershing Square filed for the largest ever SPAC with the $3.0 billion Pershing Square Tontine Holdings Ltd. (PSTH.U).
I guess size does matter, because Ackman didn’t just nudge past Churchill Capital III’s highwater mark of $1.1 billion, but blew right past it and threw in a couple of massive forward purchases for good measure.
But as recently as May 20th, only one month ago, the DRS filing shows that PSTH.U was originally only a $1.0 billion SPAC with a $750 million committed Forward Purchase (plus a $1.5 billion uncommitted Forward Purchase).
However, since many of you have most likely already taken a look at this prospectus, you know that there are a lot of moving parts to this SPAC. And many of those parts are relatively novel. As such, reviewing this filing and writing a post is going to take a little longer than normal. Look for a full write-up tomorrow.
However, in the meantime, the headline details are that PSTH.U has a $20.00 unit that includes the first ever “1/9th” warrant. However, if you’re a shareholder of record and do not redeem your share at the combination vote, you get a “2/9ths distributable” warrant as well, as an incentive to stay in the deal. Which, would effectively get you a 1/3 warrant when all is said and done.
Naturally, I have some thoughts on this, but as stated above, since there are so many new features to this transaction, I need to spend more time with it. Check back tomorrow.