Legato Merger Corp II (NASDAQ:LGTO) announced it has now closed its combination with construction firm Southland Holdings and the combined company’s shares and warrants will soon trade under the symbols “SLND” and “SLNDW”, respectively.
Shareholders redeemed about 91.6% of Legato II’s shares at the completion vote, however. Because the deal did not include a PIPE, this drops the total cash proceeds to about $23.6 million, but the deal did not carry a minimum cash condition.
Southland’s plans may not have been contingent on much new cash in any case. According to the parties’ investor presentation, Southland has been EBITDA-positive since at least 2013 and it generated $99 million in EBITDA in 2021.
If the company hits $125 million in EBITDA for 2022, Southland shareholders stand to receive 3,448,276 shares through an earnout and 1,724,138 more if EBITDA meets or exceeds $145 million. These shareholders will get the same amounts for 2023 targets of $145 million and $165 million.
The parties announced their combination in May 2022. Grapevine, Texas-based Southland provides construction services focused on large infrastructure projects out of offices in 18 US states and Canadian provinces.
Last week, Southland was awarded a $102 million road and bridge extension project by the state of Louisiana to build a 28-span bridge over a bayou.
ADVISORS
- Legato II is represented by Graubard Miller
- Southland is represented by Winstead PC. D.A.
- Davidson & Co. and Thompson Davis & Co. are acting as capital market advisors to Legato II.
Terms Tracker for the Week Ending June 20, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Two more SPACs priced IPOs this week, one each from Cohen and Cantor. That brings June’s IPO count to five and the 2025 year-to-date tally...
CSLM Digital Asset (NASDAQ:KOYNU) has filed for a $200 million IPO to hunt for a crypto transaction with a team that includes veterans from a variety of other SPAC efforts. The new SPAC sports 1/2 warrants in units and will have 24 months to initially close a business combination. It becomes the 16th SPAC that...
At the SPAC of Dawn The past year has seen a string of serial sponsor teams return to market, with some already listing multiple vehicles in a full return to the hunt. One prolific SPAC leader that has been conspicuously absent from this return so far has been Chamath Palihapitiya, who has been a part...
BM Acquisition Corp. (NASDAQ:BMOKU) has filed for a $60 million IPO to bring another first-time, Asia-based team to the market. The new SPAC is serving up 1/2 warrants in each of its units and the team will have 18 months under its initial search window to close a deal. It may extend this, but only...
At the SPAC of Dawn The Fed’s rate decision day has finally come and futures are slightly green in anticipation. De-SPACs have largely opted not to hedge their bets on the event with several making large-scale equity capital raises directly on its eve. Four companies alone raised over $1 billion in secondary offerings this week,...