The additional financing from Cannae Holdings, Inc. (NYSE:CNNE) will help cover any redemptions by shareholders prior to closing. Trebia originally brought about $518 million into the transaction from its current trust and Cannae initially committed to a $200 million equity backstop with $218 million more in debt commitments by BofA Securities (NYSE:BAC) to cover potential redemptions.
The transaction now includes a total of $650 million of fully committed financing, including a $400 million syndicated term loan from BofA Securities and $250 million from Cannae’s updated backstop. This committed financing, in addition to the management’s agreement to reinvest additional equity, will cover up to 100% of potential redemptions by TREB’s shareholders.
This new agreement should get Trebia over the finish line with the deal, and it has set its shareholder vote date for next Thursday, January 20. If the combination receives shareholder approval, the transaction will close on Monday, January 24, and will be listed on the NYSE on Tuesday, January 25, under the ticker symbol “SST”.
Trebia initially announced its $1.4 billion deal with System1 on June 29. Los Angeles-based System1 connects advertisers with internet users through a portfolio of websites and AI-powered marketing tools.