This afternoon, Burgundy Technology Acquisition Corp. (BTAQU), re-filed their S-1 amending their terms with a rare downsize to $300 million. It doesn’t happen often, but August has been a tough month for SPACs and investors have begun been pushing back on some SPACs
On top of changing the size of the offering from $400 million to $300 million, Burgundy has also shortened it’s timeline from 24 months to 18 months. Furthermore, the sponsors will now be over-funding the trust by $0.05 making this deal $10.05 in trust day-one. However, the warrants will remain the same at 1/2 warrant.
These are big moves, but by cutting the deal size by 25% and sweetening the trust value, maybe the underwriters get better traction now. Burgundy should price tomorrow night for Thursday trading, but we’ll have to wait and see. However, only a rare few SPACs have been trading well and we’re heading into peak vacation time ahead of the Labor Day Holiday. Normally, a big change in terms is enough to get investors interested, but as stated above, this has been a challenging month for SPAC IPOs. It will be interesting to see how BTAQ performs.
At the SPAC of Dawn There are signs that the macro environment for SPACs is gradually improving, but the Screaming Eagle team yesterday announced a non-redemption agreement for its combination with Lionsgate Studios. Such agreements are generally a lever one pulls when a SPAC expects a potentially turbulent closing. All in all, the terms for...
Israeli tech firms have made up an outsized proportion of SPAC activity and despite the ongoing tensions in its region, that dealmaking is continuing unabated. In fact, the SPAC named for the particular mission of taking Israeli firms public through SPACs, Israel Acquisition Corp. (NASDAQ:ISRL) in fact just took one step closer in completing that...
At the SPAC of Dawn Although the market has largely recovered from a negative stretch last week, the roller coaster is tilted back downward for Trump Media (NASDAQ:DJT), which slid -8% yesterday to $32.57 – one of its lowest points since closing with Digital World last month. Other SPACs and de-SPACs are having a more...
Remember the metaverse? Many do not. Meta’s (NASDAQ:META) attempted transition to virtually living and working seemed to mark a trend that went up and down quickly, but one SPAC deal has both survived that roller coaster and may rise with a second. Back in December 2022, Newbury Street (NASDAQ:NBST) announced a $1.85 billion combination with...
At the SPAC of Dawn Tucked into the bill that provides $95 billion in funding to American allies passed by the House this weekend is another measure that is likely to have far more impact on at least one pending deal in SPAC world. It would appear that the timing was fortuitous for TikTok rival...