April 27, 2016
SPACs are back
Since 2003 I’ve been covering the primary markets and providing research and deal databases to professionals. By “primary markets” I’m referring to new capital formation whereby an investor’s cash is for the benefit of the issuer, as opposed to going into another investor’s pocket.
With this focus in mind, I’m always on the lookout for emerging trends in how capital is raised. So when I found myself on the phone recently with Barry Grossman of the law firm Ellenoff Grossman & Schole, discussing the current state of the SPAC market, I paid close attention. Click here to read more.
Series D Blog by Steve Dresner
April 27, 2016
Exclusive: Landry's and Jefferies CEOs to launch acquisition company
Tilman Fertitta, the Texas billionaire CEO of Landry’s Inc and Richard Handler, the CEO of investment bank Jefferies Group LLC and its parent Leucadia National Corp , are launching a special purpose acquisition company (SPAC) through their companies, people familiar with the matter said.
April 04, 2016
Hennessy Capital Acquisition Corp. II (“HCAC”) and United Subcontractors, Inc. (“USI”) announced that they have entered into a definitive merger agreement, pursuant to which HCAC will acquire all of the outstanding capital stock of USI Senior Holdings, Inc., the indirect parent company of USI. In connection with the merger, HCAC will change its name to USI Holdings, Inc. The transaction is valued at approximately $348.5 million. EG&S acted as counsel to Hennessy.
March 31, 2016
The SPAC is Back: Ex-Blackstone Exec Chu Prepping $1B Blank-Check IPO
Former Blackstone Group executive Chinh Chu is preparing a new special-purpose acquisition company with the goal of raising up to $1 billion in an IPO. The new company would focus on investments in technology (particularly financial technology), financial services and business services, according to a Reuters article citing unidentified individuals people familiar with the matter.
March 24, 2016
More Wall Street banks, investors help write blank checks
An obscure corner of the U.S. IPO market is getting a new lease on life as more Wall Street banks and institutional investors turn to blank-check acquisition vehicles, once the domain of only a few underwriters and hedge funds, for better fortunes.
March 23, 2016
Blackstone Vet to Launch Largest 'Blank Check' IPO Since Financial Crisis
It plans to raise $1 billion.
Chinh Chu, the veteran dealmaker who ended a 25-year career at Blackstone Group BX -2.15% last year, is preparing to launch an acquisition company that could raise up to $1 billion in a U.S. initial public offering, people familiar with the matter said.
March 21, 2016
WL Ross to buy chemicals distributor Nexeo from TPG
WL Ross — a blank-check company formed by billionaire investor Wilbur Ross for acquisitions — will be renamed Nexeo Solutions Inc when the deal closes, expected in the second quarter. Nexeo is "an ideal platform to further roll up the fragmented chemicals and plastics distribution space," Wilbur Ross said in a statement.
March 16, 2016
KLR Energy Acquisition Corp., a special purpose acquisition corporation, announced the closing of its initial public offering in the amount of $80,000,000. EG&S acted as counsel to KLR.
March 15, 2016
In a Quiet IPO Market, Investors Are Willing To Write Blank Checks
In a year with only a few initial public offerings, one typically quiet corner of the IPO market is at least somewhat busy: the so-called blank-check IPO.
Last week’s only IPO came from just such a company, named KLR Energy Acquisition. The vehicle, also known as a special-purpose acquisition company, or SPAC, raised roughly $80 million in proceeds this week to acquire one or more businesses in the U.S. oil and natural gas space, according to its offering documents. It’s not yet settled on a target–and that arrangement is why such offerings are dubbed blank-check IPOs.
February 26, 2016
Cracks in the market bring SPACs to the market: Fun facts about SPACs
Blank check company Silver Run Acquisition (SRAQU) made headlines in the IPO market - partly because little else could - as it completed the year's largest "IPO" in an upsized $450 million offering. That's 13% more capital raised than the combined total from the four IPOs to date, and enough to make Silver Run the...
February 24, 2016
An IPO Makes It to Market
It's no secret: Stock market volatility has crushed the hopes of most companies planning U.S. initial public offerings in early 2016. The list of those that have put IPO plans onice includes OTG (an operator of restaurants and concessions at North American airports), Elevate Credit (an online lender), Advanced Disposal Services (a waste collection company) and Nutanix (a maker of software and hardware for data centers).
November 18, 2015
SPAC for good?
Having previously disappeared into the folder marked ‘Inactive’ in the years following the 2007/08 financial crisis, the special purpose acquisition company (SPAC) collective investment structure has now returned to add a certain frisson to an often staid corporate landscape.
An intermittent presence in the US since the 1990s, and less well-known in Europe, a SPAC, for those unfamiliar with the concept, has been defined by the US Securities and Exchange Commission (SEC) as a “development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person”.
www.financierworldwide.com; December 2015
October 21, 2015
Pacific Special Acquisition Corp. Completes $50,000,000 Initial Public Offering
Pacific Special Acquisition Corp., a special purpose acquisition corporation, announced the closing of its initial public offering in the amount of $50,000,000.
Market Watch, Oct. 20, 2015
October 14, 2015
Capital for Capitol: Blank check company Capitol Acquisition III prices $300 million IPO at $10 per unit
Capitol Acquisition III, a blank check company formed and led by Mark Ein, raised $300 million by offering 30 million shares at $10, as expected.
www.nasdaq.com; October 14, 2015
October 09, 2015
Week ahead: Year's largest IPOs to raise $5 billion in a week that could see 10 offerings
As many as 10 companies are on the IPO Calendar to go public, including the year's largest and second-largest initial public offerings. Six are set to raise less than $50 million, mostly holdovers that had been unable to price in prior weeks.
Renaissance Capital; October 9, 2015
October 06, 2015
SPACs on Track for Second-Biggest Year
This year will be the second biggest ever for special purpose acquisition vehicles and their initial public offerings, which have already raised $3.46 billion...
www.TheDeal.com; October 6, 2015
September 23, 2015
Securities Disclosure Documents Cost Too Much? iDisclose Will Save You Thousands
“iDisclose is not a replacement for an attorney, stated Quinn. But it is an application that can save many hours, if not days, of legal work. As we know, with attorneys, time is money, this helps both entrepreneurs and law firms keep costs low.”
www.crowdfundinsider.com; Sept. 22, 2015
September 04, 2015
Why Buyout Barons Like a Blank Check
Buyout barons are jumping on the blank-check bandwagon.
’s TPG and Alec Gores’s Gores Group are the latest investment firms to pursue initial public offerings for special-purpose acquisition companies, or SPACs. But not all deal-making nous is necessarily the same.
www.nytimes.com; Sept. 3, 2015
August 26, 2015
SPAC Pacific Special Acquisition plans $57M IPO
A new special purpose acquisition company backed by Chinese brokerage firm Pacific Securities Co. Ltd. plans to raise up to $57.5 million in an initial public offering to acquire a business in Asia.
www.thedeal.com; August 25, 2015
August 21, 2015
TPG Files to Raise $460 Million in Buyout Vehicle IPO
TPG Capital, the private equity firm run by David Bonderman and Jim Coulter, plans to raise as much as $460 million in an initial public offering of an investment vehicle to make acquisitions.
August 13, 2015, www.bloomberg.com
August 18, 2015
SPAC Weekly 8/17: Special Purpose Acquisition Corps 101
The first installment of SPAC Weekly is being introduced via Valuewalk.com for the week of Aug. 17. The idea is to keep investors up to speed on Special Purpose Acquisition Corps, also known as SPACs, on a weekly basis. A SPAC is a blank check company created for the purpose of acquiring a private company. It is a backdoor route to taking a private company public while enriching the teams that execute on completing a deal.
June 22, 2015
Douglas S. Ellenoff, a member of the Firm, was invited by the Toronto Stock Exchange to be part of a panel in their event titled "Taking Advantage of the SPAC Momentum on Toronto Stock Exchange." Mr. Ellenoff spoke on the U.S. SPAC Experience.
June 18, 2015
Alignvest Acquisition Corporation, a blank check company, set up primarily to buy an operating asset, is raising almost double the money it set out to generate via an initial public offering on the Toronto Stock Exchange. The Toronto-based firm said it plans to sell 22.5 million units at $10 a unit and raise $225 million. It had initially set out to raise $125 million by selling 12.5 million units at $10 apiece. EG&S is acting as counsel to Alignvest and the U.S. underwriters.
June 16, 2015
Electrum Special Acquisition Corporation (NASDAQ: ELECU), a blank check company, announced the closing of its initial public offering in the amount of $200 million. EG&S acted as counsel to the underwriters.
March 24, 2015
Harmony Merger Corp., a blank check company, announced the pricing of their inital public offering. The closing of the Company's initial public offering of 10,000,000 units is expected to be consummated on or about March 27, 2015. EG&S acted as counsel to the underwriter.