Although the press release did not disclose redemption amounts, TREB traded below $10 throughout its redemption deadline January 18, and opened today at $8.23. The SPAC is currently down by 1.34% at $8.09 following the headlines.
Earlier this month, Trebia added $50 million to it’s existing backstop, bringing the transaction to 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 (NYSE:CNNE) 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.
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 redemptions.
The transaction is expected to close shortly and the combined company’s common stock is expected to trade on the New York Stock Exchange under the ticker symbol “SST”.
Trebia and System1 initially announced their $1.4 billion deal on June 29. Los Angeles-based System1 connects advertisers with internet users through a portfolio of websites and AI-powered marketing tools.
Approximately 93.57% of the votes cast at today’s special meeting were in favor of the business combination with 68.63% of Trebia’s outstanding shares voting.
- Evercore is acting as exclusive financial advisor to System1.
- Latham & Watkins LLP and Willkie Farr & Gallagher LLP are acting as legal advisors to System1.
- Trethowans and Greenberg Glusker are acting as legal advisors to Protected.net.
- BofA Securities is acting as lead financial and capital markets advisor to Trebia
- Credit Suisse and Moelis & Company are also acting as capital markets advisors to Trebia.
- Weil, Gotshal & Manges LLP is acting as legal advisor to Trebia