Rolling Thunder…Thunder Bridge Acquisition II Debuts $300 Million SPAC


Rolling Thunder…Thunder Bridge Acquisition II Debuts $300 Million SPAC

Jul 17, 2019 INTEL by Kristi Marvin

If the closing of the first Thunder Bridge was the crack of lightning, tonight we got the thunder… Earlier this evening, we had the debut of Thunder Bridge Acquisition II, Ltd. (THBRU), a new $300 million IPO focused on the financial services and fintech sectors.

Once again, Gary Simanson will be leading the Thunder Bridge team in the role of President, CEO and Director, while much of the original team from Thunder Bridge I, will also be back for the second deal.  Team members from Thunder Bridge I, who are back for number II, include: William Houlihan (CFO), John Wu (CIO), Mary Anne Gillespie (Director Nominee), Robert Hartheimer (Director Nominee), Stewart Paperin (Director Nominee) and Allerd D. Stikker (Director Nominee).  If it ain’t broke…

Interestingly, even though Thunder Bridge I recently completed a very successful combination, they’re not over-reaching for a 1/3 of a warrant, but instead are going for a 1/2 warrant after having a full warrant in their first SPAC. Ironically, Thunder Bridge II is debuting on the same night Conyers Park II is pricing with a 1/4 warrant, so SPAC investors will especially appreciate these warrant terms.  Plus, Thunder Bridge II is also showing 24 months duration, 100% in trust, and a Crescent Term with a threshold of $9.50. The $9.50 price feels generous since most SPACs have gone with a threshold of $9.20, but if you’re a strong team, why not go with $9.50?  It’s either confidence or being concilliatory (or maybe both), but no matter what the reason, investors get the benefit. All told, these terms feel right on the money.

Additionally, in a surprise twist, we have Morgan Stanley on the cover as left lead underwriter  If you recall, Morgan Stanley recently hired Goldman’s head SPAC banker, signaling MS was ready to get real serious about getting more involved in the SPAC landscape and while Mr. Schachter is still on garden leave, you can be sure Thunder Bridge II is the inaugural deal of a new SPAC era for Morgan Stanley. Competition is definitely going to heat up. Cantor is back as well, albeit, to the right this time, but Cantor has the deep well of SPAC underwriting experience, so between the two (MS and Cantor) this looks like a great book-running team.

On the whole, there should be tremendous demand for this SPAC given the recent success of Thunder Bridge I and the accurately priced terms.  Look for this one to price early August.

Summary of terms below:

Thunder Bridge II