The worst has possibly already passed for the SPAC market, White & Case reports. Sponsors and banks have adopted a more cautious sentiment over the past three months since the SEC announced its proposal, but stakeholders are quickly adjusting.
One of the most exciting recent developments in the SPAC space is the deal innovation. A case in point, in July, FAST Acquisition II entered into an agreement to combine with Falcon’s Beyond, an entertainment development company specializing in intellectual property creation and expansion, in a de-SPAC transaction with a pro forma enterprise value of $1 billion. The deal is noteworthy for introducing a unique structure whereby shareholders who do not redeem their shares will receive 50 percent of their shares as convertible preferred equity with a sizable 8 percent dividend and US$11 conversion price and 50 percent common stock. What’s more, 20 percent of the founder shares held by FAST II’s sponsor were forfeited and contributed to a bonus pool allocated to non-redeeming shareholders and PIPE investors, disincentivizing the deal’s abandonment. Read more.
