This morning, AMCI Acquisition Corp. filed an amendment for their $200 million SPAC IPO with a few changes to the terms. Notably, AMCI has changed the number of warrants included in its unit from one-half of one redeemable warrant to one full warrant to purchase one share of Class A common stock. Furthermore, SPAC management will now have only 18 months to complete an acquisition rather than the original 24 months. Lastly, UBS has been added to the cover as lead manager.
The IPO size of $200 million remains the same, but the increase to the warrant and reducing the life to 18 months are significant. Roadshows are getting tougher and investors are getting choosier. Hence, terms are being sweetened to get some of these SPACs to sell. However, this should price next week – mostly likely next Thursday, for trading Friday. Changes noted below in blue:
AMCI Acquisition Corp. Summary of Terms:
- Focus: Global natural resources
- Size: $200 million
- 100.0% held in trust ($10.00 per share)
- Life: 18 months
- $10.00 unit comprised of one Share Class A Common Stock + 1 Warrant
- Warrant call for redemption trigger: > $18.00 (cash or cashless exercise)
- At-risk Capital: $5.5 million (5,500,000 warrants at $1.00)
- Limitation on Redemption Rights: 15%
- Underwriter fees: 2.0% + 3.5% deferred
- Forward purchase by Sponsor: $50 million (5,000,000 units at $10.00)
Jefferies is sole book-running manager. UBS is lead manager.
Ellenoff Grossman & Schole LLP and Skadden, Arps, Slate, Meagher & Flom LLP are Issuer’s Counsel and Underwriter’s Counsel, respectively.
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