The Latest SPAC News and Rumors: June 3rd, 2021
by Marlena Haddad on 2021-06-03 at 11:08am

Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.

Palihapitiya files for four more SPACs while Canyon’s Josh Friedman sees mistakes being made

 


Billionaire Investor Chamath Palihapitiya Files For Four New Biotech SPACs

Chamath Palihapitiya filed for four blank-check companies on Wednesday along with a new partner Suvretta Capital Management, according to paperwork registered with the Securities and Exchange Commission.  Each SPAC is seeking to raise $200 million and has a distinct focus in biotech.

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SPAC Surge May Benefit Targets That Can Play a Waiting Game

Founder of Methuselah Advisors John Chachas said his firm is telling companies looking to merge with a SPAC to wait. As blank-check firms start to run out of time, companies might be in a better position to negotiate a superior deal, Chachas told Bloomberg.

“We think companies shouldn’t answer their phones until about September 2022,” Chachas said. “After that they will have many suitors desperate to do a deal to save their founder’s capital from getting flushed.”

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Canyon’s Josh Friedman Sees Distressed Funds Feasting On SPAC Remains

“Distress will come back,” Friedman, who oversees $27 billion as co-chief executive officer of Canyon Capital, said in a Bloomberg “Front Row” interview. “It always does, because this type of environment is exactly what creates mistakes.”

“You’ve got big portions of the equity markets that are in business just to make acquisitions,” Friedman said. “SPACs, they go out of business if they don’t make acquisitions. And when people make acquisitions and they use debt to make acquisitions, there will be mistakes.”

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