SPACInsider Logo
Aurora Acquisition Corp. (AURC) Revises Better Deal Again
by Nicholas Alan Clayton on 2022-08-29 at 10:36am

Aurora (NASDAQ:AURC) announced its fourth tweak to its combination with homebuying marketplace Better, which includes an extension of the deal’s outside date to March 8, 2023.

Better must also cover up to $15 million in expenses for Aurora, half of which must be delivered within five days of this agreement, and the remainder in two $3.75 million tranches on January 2 and March 8. This last tranche is due should the merger be terminated.

Better has had a challenging year, which is likely why it has gradually become the oldest announced SPAC deal yet to complete – the next four oldest deals all involve either crypto or China. Better and Aurora announced their $6.7 billion transaction 15 months ago in May 2021.

But, in April 2022, Better revealed that rather than generating $122.9 million in net income in 2021 as it predicted at the time of its announcement, it suffered a -$303.8 million net loss on the year. In multiple waves of layoffs, the digital mortgage marketplace has since parted ways with about 3,900 of its 8,900 employees.

A former executive also filed a lawsuit against Better alleging the company misrepresented its business and prospects to secure the Aurora deal. So far, Aurora is not alleging the same, although this additional compensation going the SPAC’s way would seem to tacitly put some blame on the company.

Better announced a management shakeup in July, and thus could right the ship in time to still get the original transaction done, although the housing market is cooling at the same time. But, this amendment also waives certain financial exclusivity to Aurora, allowing Better to discuss “alternative financing structures” with Soft Bank affiliate SB Northstar.

Soft Bank was an existing investor in Better, and committed to $1.5 billion in financing in connecting with this transaction, including a $750 million bridge note that was delivered upfront in an earlier deal revision in November.

It is perhaps surprising that Better’s valuation has not been changed through the various revisions to the merger, despite the company itself changing shape quite significantly since the deal was announced. But, for now, the deal marches on.

 

Recent Posts
by Kristi Marvin on 2023-02-04 at 12:57am

Terms Tracker for the Week Ending February 3, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. The month of February started with an IPO, thanks to the pricing of Cetus Capital Acquisition Corp (Nasdaq: CETU) which began trading on February 1....

by Marlena Haddad on 2023-02-03 at 5:50pm

Forest Road II (NYSE:FRXB) and 10X Capital Venture III (NYSE:VCXB) both announced this afternoon that they have mutually terminated their business combinations. Forest Road II intended to combine with transportation technology developer HyperloopTT, but the parties decided to nix the deal due to timing constraints along with unfavorable market conditions. Tom Staggs and Kevin Mayer, Co-CEOs and...

by Marlena Haddad on 2023-02-03 at 5:30pm

Intelligent Medicine Acquisition Corp. (NASDAQ:IQMD) and AMCI Acquisition Corp. II (Nasdaq: AMCI) announced this afternoon that they have adjourned their special meetings with shareholders. Intelligent Medicine originally scheduled its meeting to be held today, but is now postponing its vote until Wednesday, February 8. Stockholders may elect to redeem their shares by no later than...

by Marlena Haddad on 2023-02-03 at 11:41am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Comcast dumps 18.5% of its BuzzFeed stock Comcast Dumps 6 Million Shares of Buzzfeed After Media Company Finally Gets a Bump Comcast dumped 18.5% of its BuzzFeed (NASDAQ:BZFD) stock in recent days, reducing its...

by Nicholas Alan Clayton on 2023-02-03 at 11:37am

Viveon Health (NYSE:VHAQ) announced this morning that it is unilaterally terminating its combination with Suneva Medical “based upon material breaches” of the merger agreement. The SPAC did not elaborate further on its claims against Suneva, but noted it will continue on and seek a new business combination. Just last week, Viveon Health was working to...

Privacy Policy|Terms Of Use
Copyright © 2023 SPACInsider, Inc. All Rights Reserved