SilverBox Engaged I (SBEA) Shareholders Approve Black Rifle Coffee Deal

SilverBox I (NASDAQ:SBEA) announced this afternoon that its shareholders have approved its combination with Black Rifle Coffee in a shareholder meeting held earlier this morning.

This announcement comes as no surprise as the SPAC announced a preliminary approval of the deal in a press release yesterday. Approximately 92% of the votes cast at today’s meeting were in favor of the business combination.

SilverBox I now expects the deal to deliver $373 million in gross proceeds. The deal included a $100 million PIPE and $100 million forward purchase agreement, which indicates that as much as half of SilverBox I’s $345 million trust was removed via redemptions. This is still well above the transaction’s $300 million minimum cash closing condition.

SBEA also announced today that it is extending the deadline for stockholders to withdraw their redemption requests to 5:00 p.m., EST, on Tuesday, February 8.

Black Rifle has branded itself as a consumer lifestyle company made by and for military veterans, and, as such, has developed a particularly strong brand presence among politically conservative users and social media platforms.

The transaction is expected to close on Wednesday, February 9, after which it is to trade on the NYSE under the symbol “BRCC” and “BRCC.WS”, respectively.

SilverBox I spiked to $15.70 November 2 on the news of the $1.7 billion transaction, and climbed 8.77% today following the special meeting, closing at $10.05.

ADVISORS

• William Blair is serving as Lead Financial Advisor, and BDT & Company, LLC is serving as Financial Advisor to Black Rifle Coffee Company.
• Citigroup and Deutsche Bank Securities Inc. are serving as Lead Capital Markets Advisors, and Guggenheim Securities, LLC, Raymond James & Associates, Inc., Truist Securities, Inc., D.A. Davidson & Co. and Telsey Advisory Group are serving as Capital Markets Advisors to SBEA.
• Kirkland and Ellis LLP is serving as legal counsel to Black Rifle Coffee Company. Paul Hastings is serving as legal counsel to SBEA.