TPG Pace Beneficial Finance Corp. (TPGY) to Liquidate Trust

TPG Pace Beneficial Finance  (NYSE:TPGY) announced in an 8-K this afternoon that it intends to liquidate its trust after being unable to complete a business combination.

The SPAC will instead redeem all of its outstanding Class A ordinary shares, effective as of October 11, 2022, and expects the last trading day for its shares to be on October 7.

The balance of TPGY’s trust account stands at $350,552,912, including the $350,000,000 in funds deposited into the account at the time of the IPO and $552,912 in interest and dividend income. Net of taxes and up to $100,000 of dissolution expenses, TPG Pace Beneficial Finance currently expects the per-share redemption price to be approximately $10.01 and will be paid on October 11.

TPG’s liquidation comes several months after it terminated its initial business combination with EVBox Group, a global provider of EV charging technologies, in December 2021. Although the termination of the $1 billion deal was mutual, the business still had to pay a fee of $17,014,631 to TPG as a reimbursement of certain transaction expenses. The reimbursement was made on January 18, 2022, and TPG has used approximately $12.6 million of that payment to fund previously incurred expenses. It expects to continue to draw from that money to pay current payables, accrued expenses, and future expenses in connection to the winding up of the SPAC’s business.

Additionally, in a letter to Shareholders, TPGY also noted how challenging market conditions have become in recent months. Karl Peterson, the Non-Executive Chairman wrote:

“…market conditions continued to deteriorate over the course of 2022 making it increasingly difficult to bridge the demands of sellers and new investors, with the new issue discounts required to successfully list a company continuing to rise. As a result, the high-quality targets we were seeking were increasingly delaying their listing timelines, pursuing alternative capital raising strategies, or both. Against this backdrop, we were unable to find a suitable transaction that was compelling for investors and met our high standards.”

TPG Pace Beneficial, which originally announced its $350 million IPO in October 2020, had 24 months to complete a business combination. The SPAC was led by Non-Executive Chairman Karl Peterson, President Michael MacDougall, CFO Martin Davidson, and Secretary Eduardo Tamraz.