Hennessy Capital Locks up Business Combination
by Kristi Marvin on 2018-08-30 at 12:07pm

Hennessy Capital Acquisition Corp. III, announced this morning that they have secured capital commitments to the tune of $85 million, thereby securing the necessary financing to complete their business combination with NRC Group.

Hennessy’s current redemption price is $10.19 and that’s exactly where the share traded to this morning, which is a good place to start before the team hits the road and starts marketing.

The transaction is anticipated to close some time in October of this year.

Details:

The $85 million is mix of common and convertible preferred:

  • $62.0 million of shares of the Company’s 7.00% Series A Convertible Preferred Stock at a cash purchase price of $100.00 per share (initial conversion price of $12.50 per share, or eight common shares for every preferred)
  • $23.0 million of shares of the Company’s common stock at a cash purchase price of $10.25 per share.

However, it should be noted that for the financing, there is a $750,000 closing fee to be paid to the subscriber, Cyrus Capital Partners, L.P., which subscribed for both 530,000 shares of the Company’s 7.00% Series A Convertible Cumulative Preferred Stock and 1,463,415 shares of the Company’s common stock (at a price of $10.25 per share of Common Stock).

Cyrus represents $68 million of the total $85 million and the remainder would appear to be Nomura’s backstop investment ($9 million convertible preferred + $8 million common stock)

Credit Suisse, Stifel and Nomura Securities acted as joint private placement agents in connection with the subscription agreements.

Recent Posts
by Nicholas Alan Clayton on 2025-04-03 at 12:24pm

The tariffs have landed, and they appear set to define market conditions for the foreseeable future for ongoing SPAC target searches, but even more so for SPACs that have already announced a deal. The trade war comes at an awkward time for SPACs as 60% of pending business combinations – 55 of 91 – are...

by Nicholas Alan Clayton on 2025-04-03 at 8:19am

At the SPAC of Dawn Trump’s tariffs have finally been unveiled and the markets for the moment are reeling with futures down nearly -3.8% for the Nasdaq and -2.8% for the Dow. International markets have so far seen shallower dips during the day’s trading, which could mean that the waters will calm as the day...

by Kristi Marvin on 2025-04-03 at 7:16am

In this SPACInsider Podcast Replay, we go back to 2021, when we spoke with Chris Urmson, CEO and Chairman of autonomous truck technology firm Aurora (NASDAQ:AUR). At the time, Aurora was working to close its $10 billion business combination with Reinvent Technology Y. Chris laid out how the company planned to approach the commercialization of...

by Nicholas Alan Clayton on 2025-04-02 at 2:59pm

As the 2025 market environment settles in, SPACs have an increasingly defined role within the capital markets ecosystem, more often bringing midcap companies public, while traditional IPO deal flow has skewed smaller over time. And, as this new analysis shows, SPACs have been frequently offering investors higher upside when these companies excel. Of course, as...

by Nicholas Alan Clayton on 2025-04-02 at 8:18am

At the SPAC of Dawn Despite the jitters sent through the market ahead of today’s festival of tariff implementations, SPACs have shown themselves to be unconcerned with “Liberation Day” as two teams priced their IPOs and will debut in the eye of the storm later today. That makes for four new SPAC listings on the...

logo

Copyright © 2025 SPACInsider, Inc. All Rights Reserved