E-commerce bulk shopping platform Boxed today announced a merger agreement with Seven Oaks Acquisition at a pro forma implied equity value of approximately $900 million.
The combined company is expected to receive $334 million in net cash proceeds from a combination of Seven Oaks’ cash in trust of approximately $259 million, assuming no redemptions, as well as a $120 million fully committed PIPE. There are no secondary shares being sold by existing Boxed shareholders.
The private placement consists of a combination of common stock and convertible notes from institutional and strategic investors including Brigade Capital Management, Avanda Investment Management and Onex Credit. The 7 percent senior unsecured convertible notes have a five-year maturity and a conversion price of $12, representing a 20 percent premium to the purchase price of the common shares. Boxed’s current equity holders will own approximately 62 percent of the company immediately after closing, assuming no redemptions.
Founded in 2013, the Boxed platform enables consumers to shop for bulk goods without the requirement of a big-box store membership. Read more.
