New IPO Filing: Collier Creek Holdings Files for $350 Million SPAC
by Kristi Marvin on 2018-09-12 at 3:35pm

We FINALLY have Chinh Chu’s highly anticipated follow-up SPAC on file.

Collier Creek Holdings filed for a $350 million SPAC early this afternoon, with a focus on the consumer goods industry. Collier Creek is being led by the Co-Executive Chairmen team of Roger Deromedi and Jason Giordano, as well as Chinh Chu, as Vice-Chairman. This team is absolutely STACKED with consumer goods heavyweights. To wit:

Roger Deromedi: Independent Chairman and Lead Director of Pinnacle Foods (NYSE: PF), former CEO of Kraft

Jason Giordano: Managing Director in the private equity group at Blackstone where he oversaw investments in the consumer, education, packaging and chemicals sectors, formerly on the board of directors at Pinnacle Foods.

Chinh Chu: Former Senior Managing Director at Blackstone, where he was the longest tenured partner other than Stephen A. Schwartzman. Co-founded CF Corporation, a $690 million SPAC that acquired Fidelity & Guaranty Life (NYSE: FG)

Director Nominees:

Antonio Fernandez:  Executive Vice President and Chief Supply Chain Officer of Pinnacle Foods, Chief Supply Chain Officer at Cadbury plc

Matthew Mannelly:  Former CEO of Prestige Brands Holdings (NYSE: PBH), a leading supplier of branded over-the-counter medications and consumer healthcare products.

Craig D. Steeneck:  Executive Vice President and CFO of Pinnacle Foods

William D. Toler: CEO and President of Hostess Brands (Nasdaq: TWNK)

It’s a little unfair to call this “Chinh Chu’s SPAC” with this much talent, but since Mr. Chu is the team member with previous SPAC experience, it was the lazy way for all of us in the SPAC community to give a “rumored SPAC” a name.

As for the structure, its your typical NYSE model of 24 months, 100% in trust, unit comprised of 1 share + 1/3 warrant.  However, Collier Creek also includes the “Warrant Redemption for Shares” feature (previously seen in TPG Pace Holdings, GS Acquisition Holdings, and Gores III).

You can read more about the warrant redemption for share feature here, when we wrote about it for Gores III.  It’s a term that is, so far, only reserved for A++ teams.  A full summary of terms for Collier Creek can be found below.

Collier Creek Summary of Terms:
  • Focus:  Consumer Goods
  • Size: $350 million
  • 100% held in trust ($10.00 per share)
  • $10.00 unit comprised of one Class A Ordinary Share + 1/3 of one full Warrant 
  • Warrant call for redemption threshold (cash/cashless): >$18.00 
  • Warrant call for redemption threshold (for shares): > $10.00
  • 24 months to complete an acquisition
  • Limitation on Redemption Rights: 15%
  • At-risk Capital: $9.0 million (6,000,000 warrants at $1.50)
  • Forward Purchase Agreement with Sponsor and Independent Directors: $35 million in aggregate, includes:
    • 3,500,000 Class A ordinary shares
    • 1,166,666 redeemable warrants (strike $11.50)
  • Underwriter fees: 2.0% + 3.5% deferred

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated are the lead underwriters

Winston & Strawn LLP and Davis Polk & Wardwell LLP are Issuer’s Counsel and Underwriter’s Counsel, respectively.



Recent Posts
by Marlena Haddad on 2023-12-08 at 1:59pm

Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...

by Nicholas Alan Clayton on 2023-12-08 at 11:12am

Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...

by Marlena Haddad on 2023-12-08 at 10:27am

EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...

by Marlena Haddad on 2023-12-08 at 9:42am

Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...

by Nicholas Alan Clayton on 2023-12-08 at 7:48am

At the SPAC of Dawn This week ends with an unusually busy earnings calendar as 172 US-listed companies report quarterly figures today. Among them is Exela Technologies (NASDSAQ:XELA), which completed a combination with Quinpario 2 in 2017. The billing software company has gone on to do another SPAC deal on November 29, this time spinning...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved