If you need further evidence of a hot, hot SPAC market, tonight Churchill Capital Corp. III, which only has a 1/4 warrant included in it’s unit and can remove $1.0 million per year of interest for working capital, STILL managed to upsize their offering by $200 million. As of tonight, Churchill III’s offering is now $800 million, a size we haven’t come close to seeing since Silver Run II priced a $1,035.0 billion SPAC in March of 2017. Since then, the largest sized SPAC has topped out at $690 million (with over-allotments). However, keep in mind that if Churchill III completes their own full over-allotment, they can potentially raise $920 million when all is said and done.
This is a sizzling hot deal and IPO units are going to be scarce, even with an up-size, so chances are good that we see Churchill come out of the gate close to Gores IV’s high of $10.52 as a day-one open price. This also means that former teams, like TPG Pace and Social Capital Hedosophia, and maybe even some new teams, will almost certainly go for a 1/4 warrant as well. Although, Chamath Palihapitiya (former CEO and Chairman of Social Capital Hedosophia), currently has his hands full as Chairman of Virgin Galactic (currently trading around $23.00).
It’s a new world when an $600 million, 1/4 warrant SPAC, can still upsize $200 million as a “blank check” company. But guess what….in a market like this, we can probably expect more changes. Look for envelopes to be pushed now that the 1/4 warrant is “normal”. It’s not stopping here.
Summary of revised terms below:
Terms Tracker for the Week Ending October 4, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This week was much, much heavier on the S-1 filings. There were five new SPACs filed along with six amended S-1 registration statements making good...
Willow Lane (NASDAQ:WLACU) has filed for a $110 million SPAC to be the latest repeat SPAC team returning to the market with the help of underwriter BTIG. BTIG is, in fact, leading recent underwriter activity with four new SPACs filed since the August 1, while no other firm has been left lead for more than...
At the SPAC of Dawn While SPACs settle into a slight pause through Rosh Hashanah, de-SPACs are also entering another period of holiday-based trading patterns. Traders following the usual “Sell in May and Go Away” pattern this year would have missed out on a major late-summer market rally. But, stocks may now feel the effects...
At the SPAC of Dawn As SPACs switch back into gear with a new cycle, traditional IPO road shows are heating up into the fourth quarter as well. A raft of private equity-backed companies have determined now is the time to strike and the period between the Fed’s September rate slash and the November election...
Earth, Wind & Fire may have been on to something with the end of September and “chasin’ the clouds away“. The SPACs from the past are still lingering which are affecting the averages as newly issued SPACs have come to market in the past year. Each has the same goal of bringing a target company...