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Fintech Acquisition Corp. III Files for a $275 Million SPAC

Fintech Acquisition Corp III

Fintech Acquisition Corp. III Files for a $275 Million SPAC

Oct 23, 2018 INTEL by Kristi Marvin

And an unprecedented six out of eight team members are women.

Tuesday evening, the Fintech team filed their third SPAC with Fintech Acquisition Corp. III, for a $275 million IPO. Fintech III will once again be led by the duo of Betsy and Daniel Cohen, as Chairman and CEO, respectively.  Betsy and Daniel have lead both Fintech I and II, and have consistently delivered successful SPAC deals with CardConnect (bought by First Data for $15.00/share) and more recently, International Money Express (IMXI) in July, which is currently trading at $12.01.

However, Fintech III is notable in that the entire board of directors is women.  In fact, of the eight member Fintech III team, only two are men – Daniel Cohen as CEO and James McEntee as President and CFO.  This is welcome news and a refreshing twist on SPAC teams.

Looking at the SPAC structure, this is a standard 24 months to complete, 100% in trust, 1 share + 1/2 warrant structure.  Nothing fancy.  In addition, Cantor is once again participating in the private placement purchase of units by contributing $1,000,000 of the total $9,300,000 purchase of units at $10.00.  Of the six SPACs Cantor has book-run this year, Cantor has participated (or will be participating) in the private placement purchases of five of them (FTAC, CTAC, LOAC, ALGR, TBRG). Tiberius Acquisition Corp. being the exception back in March.

Furthermore, the fintech sector is hot and Fintech III states they are specifically looking to identify:

“businesses which provide disruptive technological innovation to the financial services industry, with particular emphasis on businesses that provide data processing; transactional and data security; rewards, loyalty, and consumer engagement platforms by which financial services engage their clients and market and provide services to them; digital marketing; and payment processing services.”

Experience counts.  Especially with SPACs and this team already has two successful deals under their belt. Demand for this SPAC should be large, so let’s see if they up-size.

Fintech Acquisition Corp. III Summary of Terms:

  • Focus:  Fintech
  • Size: $275 million
  • 100.0% held in trust ($10.00 per share)
  • Life: 24 months
  • $10.00 unit comprised of one Share Class A Common Stock + 1/2 Warrant 
  • Warrant call for redemption trigger: > $18.00 (cash or cashless exercise)
  • At-risk Capital: $9.3 million (9,300,000 warrants at $1.00)
  • Limitation on Redemption Rights: 20%
  • Underwriter fees: 2.0% + 4.0% deferred

Cantor Fitzgerald is sole book-running manager.
Ledgewood PC and Ellenoff Grossman & Schole LLP are Issuer’s Counsel and Underwriter’s Counsel, respectively.