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Friday Happy Hour Update: Two New SPACs + BRAC

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Friday Happy Hour Update: Two New SPACs + BRAC

Jun 28, 2019 INTEL by Kristi Marvin

And one of the new SPACs has a 1/4 warrant… this is BIG news.

In the interest of it being the happiest of hours…a brief summary has been provided below.  A more thoughtful analysis will be provided later.


For the first time EVER, we have a SPAC trying for a 1/4 warrant.  This is wild…and it’s probably going to make a few warrant players want to drink heavily tonight.  At $400 million, this is a pretty big SPAC for the underwriters to have sell a 1/4 warrant, but if they’re successful, you can guarantee that other teams will try it and that will not make warrant investors happy.  Having said that, the Conyers Park II team was responsible for one of the most successful SPAC combinations ever – Simply Good Foods (SMPL) – which closed today at a whopping $24.08.

Other headline terms:  100% in trust, 24 months, warrant call for shares at $10.00, no crescent term.  Deutsche Bank is left lead, Goldman Sachs is right lead.



Another tier-1 SPAC was also filed tonight in the form of Oaktree Acquisition Corp. Oaktree, the sponsor, is a leading global investment management firm with approximately $118.6 billion in assets under management.  Hence, we’ve got A++ terms:  24 months, 1/3 warrant, warrant call for share term, Crescent term at $9.20.  Credit Suisse is left lead underwriter, and Deutsche Bank has a double header tonight as right lead.

The team is an impressive array of heavy hitters, with Patrick McCaney, Alexander Taubman, and Matthew Pendo leading the team.  However, if this wasn’t their first SPAC, I bet their bankers would have gone for a 1/4 warrant as well.  Especially given that DB is an underwriter on both.

Note:  Andrea Wong, who is on Oaktree Acquisition’s board is also on Social Capital Hedosophia’s board, but they have yet to announce their combination.



Black Ridge files a definitive proxy and fills in some blanks for us.  First up, they are only going for a one-month extension to August 10th, and they are pulling a “Gig” by only offering $30,000 to trust to extend.  As a result, we won’t know the exact amount per share to be contributed until post-vote when they count the redemptions.

More to come on all of the above, but for now….enjoy the weekend.