SPAC bosses from billionaire SoftBank Group Corp. founder Masayoshi Son to Silicon Valley investor Vinod Khosla are starting to push tougher deal terms as the craze for blank-check companies builds, Bloomber reports.
This week, at least three special purpose acquisition companies preparing U.S. listings eliminated a sweetener – redeemable warrants – usually offered to investors. The change removes a popular way for punters to boost their holdings in a SPAC, showing how the most well-known issuers have gained the power to set their own agendas even as they compete for attention with hundreds of other deals.
The SoftBank Vision Fund, Huffington Post co-founder Ken Lerer and tech investor Vector Capital all modified the terms of their latest SPACs to cut out warrants in filings this week. They’ve now decided to sell stock without warrants attached, reducing the risk of future dilution. Read more.
