SPACInsider Logo
The Eagle Flew the Nest: James Graf Files for His Own $225M SPAC
by Kristi Marvin on 2018-09-18 at 6:43pm

James Graf, who served on the Platinum Eagle, Double Eagle, Silver Eagle and Global Eagle SPAC teams, debuts his own SPAC – Graf Industrial Corp.

Tuesday afternoon, Graf Industrial Corp. filed for a $225 million IPO with a focus on the Industrial sector and is being led by the eponymous James Graf, as CEO and Director.  As previously mentioned, Mr. Graf brings a long SPAC resume to the team, having served on three previous “Eagle” SPACs (Double, Silver and Global) and another Eagle that is still searching (Platinum).

Looking at Mr. Graf’s previous SPAC experience, he served as vice president, CFO and treasurer on the Double Eagle SPAC, now WillScot Corp., and reviewing the table below, that one was very much a winner. The other two, not so much.

However, in the first three Eagles, Mr. Graf’s role was CFO.  He is also currently only a Director of Platinum Eagle.  So now that he’s in the pilot’s seat as CEO with Graf Industrial, it’s a bit of a different story. He’s got the “stick”. Plus, experience counts and Mr. Graf has that in spades.

NameIPO
Date
Unit
Price
Gross
Proceeds
(mms)
AcquisitionAcquisition
Symbol
Acquisition
Current
Share Price
Platinum EagleJan-18$10.00$325.0*Searching*------
Double EagleJune-15$10.00$500.0WillScot Corp.WSC$17.05
Silver EagleApril-13$10.00$325.0Videocon d2h Limited (Now trading on the NSE)VIDEOIND.NS---
Global EagleFeb-11$10.00$190.0Row 44 Inc. & Advanced Inflight AllianceENT$2.37

Regarding structure, once again we see the addition of the “Crescent Term“, which provides investors protection in the event an acquisition involves a PIPE.  Plus, we have another small twist regarding the completion deadline.  The prospectus states the team will have 15 months to complete an acquisition. However, if they need an additional three months, the warrant (which at IPO is for 1/2 share), becomes a warrant for 3/4 of a share.

Fifteen months is an incredibly short amount of time for a SPAC to complete a deal.  So, was the extra 1/4 share added to the warrant more palatable to the SPAC team rather than say, over-funding the trust to start with 18 months?  We can only speculate yes, but it will be a full-on sprint to the finish line.  Summary of terms below.

Graf Industrial Corp. Summary of Terms:
  • Focus:  Industrials
  • Size: $225 million
  • 100.0% held in trust ($10.00 per share)
  • $10.00 unit comprised of one Share of Common Stock + 1 Warrant for 1/2 Share 
  • Warrant call for redemption trigger: equals or exceeds $18.00 (cash or cashless exercise)
  • 15 months (+ 3 months) to complete an acquisition:
    • If an additional 3 months is needed, the public warrants become exercisable for 3/4 share 
  • At-risk Capital: $6.7 million (13,400,000 warrants at $0.50)
  • “Crescent Term” included
  • Underwriter fees: 2.0% + 3.5% “Business Combination Marketing” fee

EarlyBirdCapital and Oppenheimer & Co are co-bookrunning managers. I-Bankers Securities is co-manager.

Winston & Strawn LLP and Graubard Miller are Issuer’s Counsel and Underwriter’s Counsel, respectively.

 

Recent Posts
by Marlena Haddad on 2022-12-06 at 5:43pm

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC Liquidations: Broadscale, Revolution Healthcare, Research Alliance II, and Kairos Broadscale Acquisition Corp. to Liquidate  On December 6, 2022, stockholders of Broadscale Acquisition Corp. (NASDAQ:SCLE) approved amendments to change the termination date from February 17,...

by Nicholas Alan Clayton on 2022-12-06 at 1:02pm

Roth CH Acquisition IV Co. (NASDAQ:ROCG) has entered into a definitive agreement to combine with renewable energy equipment-maker Tigo for pre-money equity consideration of $600 million. Campbell, California-based Tigo manufacturers components that optimize and enhance safety for solar panel arrays, with installations on seven continents The combined company is expected to trade on the Nasdaq...

by Marlena Haddad on 2022-12-06 at 12:55am

  Below is a daily summary of links to the latest SPAC news and rumors gathered across the web.  Latest SPAC News: Portugal real estate developer Vic Properties in merger talks with BurTech Caner-Led Aggregate Is Said to Discuss Vic Properties SPAC Deal Aggregate Holdings SA is in talks to take its Portuguese unit Vic...

by Marlena Haddad on 2022-12-06 at 11:11am

SportsMap Tech Acquisition Corp. (NASDAQ:SMAP) has entered into a definitive agreement to combine with intelligent thermal imaging provider Infrared Cameras Holdings (ICI) at a pre-money equity valuation of $100 million. Beaumont, Texas-based Infrared Cameras Holdings develops and manufactures infrared-sensor systems, offering handheld and fixed hardware. The combined company is expected to trade on the Nasdaq once the...

by Nicholas Alan Clayton on 2022-12-06 at 10:24am

Ares Acquisition Corporation (NYSE:AAC) has entered into a definitive agreement to combine with nuclear power company X-energy at an enterprise value of $2.2 billion. Rockville, Maryland-based X-energy has developed small modular nuclear reactor technology designed to provide nuclear plants for projects ranging from individual industrial sites to regional utilities. The combined company is expected to...

Privacy Policy|Terms Of Use
Copyright © 2022 SPACInsider, Inc. All Rights Reserved