The parties’ press release included scant details and made no mention of redemption figures. But, the combined company is set to see its shares and warrants trade on the Nasdaq under the symbols “OPAL” and “OPALW”, respectively, following close.
ArcLight II traded below its estimated pro rata trust value of $10.03 throughout the day of its July 13 redemption deadline, hitting a high of $9.73 and low of $9.31. The stock has since recovered and closed the week at $10.28, with after-hours action pushing this higher.
The merger’s terms included a $225 million minimum cash condition, but ArcLight II also lined up a $125 million PIPE, anchored by US utility company NextEra Energy (NYSE:NEE).
ArcLight II announced its $1.7 billion combination with OPAL on December 2. White Plains, New York-based OPAL produces and distributes renewable natural gas and electricity from biomethane sources.
The company generated $41 million in EBITDA from $166 million in revenue in 2021. In March, it launched commercial operations at its fifth renewable natural gas facility in Shiloh, Ohio, which is expected to turn $19 million in EBITDA annually by 2024.
- BofA Securities, Inc. (“BofA Securities”) is serving as lead financial advisor and Credit Suisse Securities (USA) LLC (“Credit Suisse”) is serving as financial advisor while Sheppard Mullin Richter & Hampton LLP is serving as legal advisor to OPAL Fuels.
- Citigroup Global Markets Inc. (“Citi”) is serving as lead financial advisor and Barclays Capital Inc. (“Barclays”) is serving as financial advisor while Kirkland & Ellis LLP is serving as legal advisor to ArcLight.
- Citi, BofA Securities, Barclays and Credit Suisse are serving as joint placement agents on the PIPE offering, while Winston & Strawn LLP is counsel to the Placement Agents.
- J.P. Morgan Securities LLC served as sole financial advisor and Hogan Lovells US LLP acted as counsel to NextEra Energy on the transaction.