Blue Nile, an online retailer of GIA graded, conflict-free diamonds and fine jewelry, and Mudrick Capital Acquisition II have entered into a merger agreement. The transaction implies a pro forma enterprise value for Blue Nile of approximately $683 million.
If approved, Blue Nile is expected to list on the Nasdaq.
The transaction is expected to generate approximately $450 million of capital before expenses, assuming no redemptions by Mudrick II shareholders. This includes $50 million of new preferred equity provided by the SPAC as well as $80 million of committed PIPE capital ( about $50 million of which has been pre-funded) from existing sponsors Bain Capital Private Equity, Bow Street, and Adama Partners, and from Mudrick Capital. Existing Blue Nile shareholders will roll over their existing equity, retaining 39% of the combined company’s pro forma equity. The pro forma implied equity value of the combined company is $873 million at the $10.15 per share PIPE price — again, assuming no redemptions. Read more.
