New SPAC: SilverBox Corp. III Files for $100M IPO
by Nic Narang on 2023-02-13 at 4:03pm

Last Friday, SilverBox Corp. III filed for a $100 million IPO to sell 10 million units for a prospective business combination with one or more businesses with an aggregate enterprise value over $750 million. Although the SPAC has a broad industry focus, its primary sectors of interest include consumer goods, technology, media, finance, telecommunications, and energy. Each unit is priced at $10, which consists of one share of Class A common stock and one-third of a redeemable warrant. A whole warrant can be exercised to buy one Class A common stock at $11.50 per share.

In the event that the company fails to complete its initial business combination within 18 months of the offering, it can execute a one-time extension of three months (for a total of 21 months) by contributing $0.10 per share to the trust account. The trust account is currently over-funded with 101% of initial IPO proceeds ($10.10 per unit), below the 2023 average of 102.0% ($10.20 per unit).  Presumably, overfunding at only 1% is partially due to this not being SilverBox’s first rodeo in the SPAC market.

As for SilverBox Capital’s first deal, they priced a $300 million IPO via SilverBox Engaged Merger Corp I (SBEA), which culminated in a business combination with Black Rifle Coffee Company (NYSE: BRCC) for an enterprise value of $1.71 billion in February 2022. The SPAC’s common shares soared to a high of $33.11 on April 11, 2022, representing a 231% return on the share for IPO investors. However, the share price has since fallen to $6.87, a decline of -31.3%, which, when compared to peer consumer De-SPACs, which as a group are down -74.8%, shows a better result.

SilverBox Corp. III is led by the same key figures as SilverBox Engaged Merger Corp I (SBEA), with Stephen M. Kadenacy acting as the Executive Chairman, and Joseph E. Reece, as the Chief Executive Officer, after serving reversed roles in their last cup of coffee. To add to their CVs, Mr. Kadenacy and Mr. Reece are both Co-Founders and Co-Managing Partners of SilverBox Capital.

Also, likely contributing to this deal structure is Credit Suisse’s stature as the left lead underwriter. The firm is re-entering the SPAC game for the first time since May 2022 when it served as the left lead underwriter for a $225 million IPO with Investorcorp India Acquisition Corp. (IVCA). The firm has acted as the left lead underwriter on 95 SPAC IPOs since 2016, facilitating median proceeds of $310 million, 100.0% in trust, or $10.00 per unit, over a median 24-month initial time horizon. However, these terms are more indicative of a friendlier terms environment for sponsors. SilverBox III’s terms, while still generous considering the typical terms we’ve seen recently, are akin in structure to terms we normally see from larger, bulge bracket underwriters.

The sponsor, SilverBox Sponsor III LLC, will purchase 3.5 million warrants at $1.50 per warrant, which can be increased to 3.8 million warrants if the underwriters’ over-allotment option is exercised fully, rendering its at-risk capital $5.3 million, or $5.7 million in the aggregate if the underwriters’ option to purchase additional units is exercised in full.

With the SilverBox team’s sight set on another business combination, investors should hope the caffeine from its previous deal is a strong cup of fuel for the SPAC’s progression.

SPAC TERMS

 

Recent Posts
by Nicholas Alan Clayton on 2025-05-09 at 12:17pm

Lake Superior (NASDAQ:LKSPU) has filed for a $100 million SPAC as its CEO attempts to go three-for-three with SPACs that led to completed deals. This new vehicle has one right to a 1/6 share in each unit and some common features of a SPAC underwritten by Cohen & Company in this current climate. Although the...

by Nicholas Alan Clayton on 2025-05-09 at 8:20am

At the SPAC of Dawn De-SPACs were among the biggest movers in yesterday’s stock market rally, but most of this momentum came on the backs of direct earnings performance. Only three US-listed companies had bigger one-day gains than quantum computing firm D-Wave’s (NYSE:QBTS) +51.2% jump. This came as the company announced $15 million in revenue...

by Nicholas Alan Clayton on 2025-05-08 at 4:57pm

EGH Acquisition Corp. (NASDAQ:EGHAU) announced the pricing of its $150 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “EGHAU”, Friday, May 8, 2025. The new SPAC aims to combine with a target company in the energy transition or sustainability arena that help industries achieve efficiencies and decarbonization....

by Nicholas Alan Clayton on 2025-05-08 at 8:25am

At the SPAC of Dawn Fed Chair Jerome Powell announced yesterday that the body intends to keep rates unchanged, earning him the moniker “FOOL” by US President Donald Trump. But, the announcement could bring some stability to market, which has seen macro factors pull it a variety of directions since the start of the year....

by Kristi Marvin on 2025-05-07 at 12:13pm

Tariffs, Trade Routes, and Tech: Freightos’ View from the Cargo Frontlines 2025 is shaping up to be a wild year for global trade, and few companies have a vantage point on the impacts of every-changing tariff policy quite like digital cargo-booking platform Freightos (NASDAQ:CRGO). This week, we catch up with Freightos CEO Zvi Schreiber. He shares...

logo

Copyright © 2025 SPACInsider, Inc. All Rights Reserved