Tailwind Two (NYSE:TWNT) has amended its combination agreement with satellite manufacturer Terran Orbital with key tweaks for the transaction’s closure.
The largest change is a requirement that the SPAC not incur redemptions of 85% or more. The 23 SPACs that have completed transactions in 2022 and held their last vote this year faced redemptions of 83.8% on average, so this could be a close shave if Tailwind Two follows the recent trend.
The changes also remove a requirement that Terran Orbital hold no more than $40 million in net debt at the transaction’s close. At announcement, the deal foresaw Tailwind Two drawing on $75 million in term loans while repaying $70 million in past debt. So, this change could be a recognition of the possibility of lower proceeds for debt paydowns, but could also open the door for Tailwind Two to shore things up with new financing arrangements.
Tailwind Two shareholders are set to meet to vote on the transaction March 22, but the redemption deadline is Friday, March 18, so the parties should have a feel of the situation before the week is out.
The market has so far been encouraged by the deal changes with Tailwind Two trading up about 0.1% to $9.93 in the premarket. This is below its estimated pro rata trust value of $10.00, but nonetheless higher than much of the field of SPACs at a similar stage working towards close.
Tailwind Two initially announced its $1.6 billion combination with Terran Orbital on October 28. The Boca Raton, Florida-based company provides small satellite solutions for military, intelligence community, civil and commercial customers.
At the SPAC of Dawn Happy Friday! SPACInsider has unveiled new presets on SPAC Performance accessible via the Data drop-down to easily sort for the highest and lowest performing active SPACs and de-SPACs. On the de-SPAC side, Vertiv (NYSE:VRT) continues to be well ahead of the pack, logging a 710% return by share price adjusted...
AGBA (NASDAQ:AGBA) stock is up over +90% this morning following a +211% premarket spike on news it has signed a definitive agreement to combine with social streaming video platform Triller. AGBA, the company itself, was formed by the $555 million combination between a SPAC of the same name and TAG Companies, a financial services firm...
At the SPAC of Dawn Since closing its combination with DHC last month, AI customer engagement firm BEN (NASDAQ:BNAI) has rolled out new partnerships with call center and healthcare clients. And, while it faces a fair bit of competition in the chatbot realm, several high-profile institutions have demonstrated that creating one that provides useful services...
Blue Ocean (NASDAQ:BOCN) provided significantly more texture today in the presentation for its $275 million combination with Asian digital media group TNL Mediagene, which it expects to hit profitability in the second half of the year despite a slight shakeup in financing for the transaction. The first big update in the first investor deck is...
At the SPAC of Dawn A brand new market may have just opened up for space de-SPACs as NASA administrator Bill Nelson announced a shift in the agency’s $11 billion program for a mission to return samples from Mars. Rather than rely on the agency’s internal technologies that would be predicted to get a sample...