Independent music company Reservoir Holdings and Roth CH Acquisition II announced a definitive agreement for a business combination to take Reservoir public. Pending shareholder approval, upon closing the deal the combined company will be renamed Reservoir Media, and is expected to list on the Nasdaq under RSVR.
The new company would have an enterprise value of $788 million, the parties said. Existing Reservoir owners will roll 100 percent of their equity into the combined enterprise.
Institutional investors, including funds managed by Caledonia, will participate in a common stock PIPE of $150 million at $10 per share. Following the transaction and after expenses, Reservoir is expected to receive approximately $246 million.
Reservoir founder and CEO Golnar Khosrowshahi will continue to lead the combined company. Reservoir will be the first independent music company to go public in the United States and, the company said, as well as the first female founded and led music company to trad publicly in the United States. Read more.
