Spartan Energy Getting Ready to IPO this Week.
Spartan Energy Acquisition Corp., filed a new S-1/A this morning, with a few changes. The most notable change being a new banker in the line-up (and the removal of Apollo Global Securities).
New Co-Manager
RBC Capital Markets is now on the cover as part of the co-managing group that also includes Jefferies and Tudor, Pickering, Holt. The lead underwriters remain the same with Citigroup and Credit Suisse. This is a nice win for RBC and marks their first SPAC cover of 2018. Their most recent SPAC was the $345 million Mosaic Acquisition Corp. back in October of 2017.
RBC is replacing Apollo Global Securities, and based on pure speculation, Apollo Global Securities’ removal is most likely due to conflicts of interest. Not that those conflicts weren’t insurmountable, but since the underwriting group is so strong, why make thing difficult by including AGS and hence, the replacement.
New Independent Director Nominee
The other notable change was the addition of a new independent director nominee to the board with John Stice. Mr. Stice bring a wealth of energy experience to this deal having served as CEO of Access Midstream from the time it spun out of Chesapeake Energy until his retirement in 2015.
As far as Spartan’s deal size, still no increase. The transaction remains at $400 million, however, this IPO is widely expected to price Thursday, for Friday trading, so maybe we’ll see an upsize then.
Summary of terms are as follows:
- Focus: Energy (North America)
- $10.00 unit comprised of one share class A common stock , one-third of a full warrant
- Warrant call for redemption threshold: equals or exceeds $18.00 (cash or cashless exercise)
- Limitation on redemption rights: 20%
- 100% held in trust ($10.00 per share)
- 24 months to complete an acquisition
- Sponsor purchase of private placement warrants at $1.50 per warrant (7,333,333 warrants = $11M)
- Underwriting fees: 2.0% / 3.5% deferred
- Bookrunners: Citigroup, Credit Suisse; Co-managers: Jefferies, RBC Capital Markets & Tudor, Pickering Holt
Terms Tracker for the Week Ending June 13, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This week brought three new SPAC IPOs with pricings from BEST SPAC I Acquisition Corp., Blue Acquisition Corp. and Blue Water Acquisition Corp. III. All...
Starry Sea (NASDAQ:SSEAU) has filed for a $50 million SPAC with leadership that is making its debut as SPAC officers and a broad search mandate. The new SPAC is offering investors one right to a 1/6 share in each unit and a redemption opportunity coming at the end of its 15-month initial transaction deadline if...
At the SPAC of Dawn Israel’s bombing of sites in Iran has brought a new injection of uncertainty to the markets, which appear poised to open in the red. But, this may be a temporary factor after the week has also produced better-than-expected indicators on inflation. One more data point is set to come in...
Best SPAC I Acquisition Corp. (NASDAQ:BSAAU) announced the pricing of its $55 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “BSAAU”, Friday, June 13, 2025. The new SPAC plans to combine with a consumer goods company with a total enterprise value between $100 million and $600 million....
Blue Acquisition Corp. (NASDAQ:BACCU) announced the pricing of its $175 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “BACCU”, Friday, June 13, 2025. The new SPAC intends to combine with a target company within a manufacturing company or data center that aligns with green energy initiatives and...