Cohn Robbins Strike $9.3B Allywn Deal to End Sour Week for SPACs

3 DAs and 4 IPOs mark a week to forget as SPACs take a hit with equities.

Author:
David Drapkin
Publish date:
Jan 21, 2022

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Gary Cohn and Clifton Robbins capped off the week by announcing a large SPAC deal with their Cohn Robbins Holdings Corp. (CRHC) announcing a $9.3B deal to take the multinational lottery operator Allwyn public. Surprise, the common shares barely moved (closed $9.86) though the warrants did see an OK pop of +8% (on a terrible market day) to close at $0.73.

The deal includes a creative plea to shareholders, don't redeem and you'll be gifted bonus shares. 6.6M shares to be doled out pro-rata based on the # of shares that ultimately redeem.

It's an interesting move in the era of increasingly high redemption rates. The average redemption rate has spiked to 71% so far in January 2022 with some SPACs reaching as high as 98% redemption on their deals.

Will Cohn Robbins' dangle work to keep investors in the deal? Time will tell, perhaps by the time the deal closes sentiment will return positive and the SPAC will be trading at a premium to NAV 😉. Wishful thinking.

The tone in the SPAC market continued to be sour this week as the broader market (particularly risk assets and tech stocks) took a hard turn for the worse. Unsurprisingly that meant for a quiet week on the new issuance and activity front: 3 new DAs and 6 IPOs. As for the DAs, not much enthusiasm:

CRHC + Allywn: $9.86, $0.73
SPKB + Eleusis: $9.74, $0.51
DNAC + ProKidney: $9.83, NA

Elsewhere in SPACs

KKR Acquisition Holdings I Corp (KAHC) is rumored to be in merger talks with Pet Smart at a ~$14B valuation. Pet Smart, backed by BC Partners, has long been a name associated with LBOs. KAHC stayed relatively flat and the warrants fell 13%.

Upcoming Merger Votes

Jan 25 | $ 8.49 | YSAC - Yellowstone Acquisition Co --> Sky Harbour LLC
Jan 26 | $ 8.24 | SEAH - Sports Entertainment Acquisition Corp --> Super Group
Jan 31 | $ 9.97 | ENNV - ECP Environmental Growth Opportunities Corp. --> Fast Radius, Inc.
Jan 31 | $ 10.05 | CCAC - CITIC Capital Acquisition Corp --> Quanergy Systems
Feb 01 | $ 9.95 | OCA - Omnichannel Acquisition Corp --> Kin
Feb 01 | $ 9.97 | ENVI - Environmental Impact Acquisition Corp. --> Greenlight Biosciences Inc.
Feb 01 | $ 9.98 | MCMJ - Merida Merger Corp. I --> Leafly Holdings, Inc.
Feb 01 | $ 9.97 | IVAN - Ivanhoe Capital Acquisition Corp --> SES Holdings

New IPOs

None of this week's new IPOs finished above $10 despite all featuring over-funded trusts.

Jan 20 | $ 9.99 | HCMA - HCM Acquisition Corp
Jan 20 | $ 10.00 | HMA - Heartland Media Acquisition Corp.
Jan 20 | $ 9.95 | KNSW - KnightSwan Acquisiton Corp
Jan 19 | $ 9.99 | BYN - Banyan Acquisition Corp
Jan 19 | $ 9.97 | DUET - DUET Acquisition Corp.
Jan 18 | $ 9.96 | AIB - AIB Acquisition Corp

Today's Price Action

See of Red for De-SPACs

Happy Friday!

Biggest Gainers

CFV gamma squeeze? CFV soared +30% after it had gone ex-redemption, and ahead of its extension vote upcoming on Monday. Might be signaling large redemptions there.

We know VMAC had large redemptions upwards of 98%. VMAC soared today as well.

31.31% ~ $ 12.33 | CFV - CF Acquisition Corp. V (Announced)
25.38% ~ $ 10.72 | VMAC - Vistas Media Acquisition Company Inc. (Announced)
8.28% ~ $ 8.76 | TREB - Trebia Acquisition Corp (Announced)
.92% ~ $ 9.89 | FACA - Figure Acquisition Corp. I (Pre-Deal)
.79% ~ $ 10.23 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
.71% ~ $ 9.91 | HHGC - HHG Capital Corporation (Pre-Deal)
.71% ~ $ 9.95 | ACAH - Atlantic Coastal Acquisition Corp. (Announced)
.62% ~ $ 9.77 | FICV - Frontier Investment Corp (Pre-Deal)
.61% ~ $ 9.92 | INTE - Integral Acquisition Corp 1 (Pre-Deal)
.52% ~ $ 9.75 | ITQ - Itiquira Acquisition Corp. (Pre-Deal)
.41% ~ $ 9.79 | KAHC - KKR Acquisition Holdings I Corp (Pre-Deal)
.41% ~ $ 9.87 | GAPA - G&P Acquisition Corp. (Pre-Deal)
.41% ~ $ 9.89 | APAC - StoneBridge Acquisition Corp. (Pre-Deal)
.41% ~ $ 9.90 | MBSC - M3-Brigade Acquisition III Corp. (Pre-Deal)
.40% ~ $ 9.94 | IOAC - Innovative International Acquisition Corp. (Pre-Deal)
.40% ~ $ 9.96 | MCAE - Mountain Crest Acquisition Corp. III (Pre-Deal)
.35% ~ $ 9.81 | PRBM - Parabellum Acquisition Corp. (Pre-Deal)
.32% ~ $ 9.99 | ACEV - ACE Convergence Acquisition Corp (Announced)
.31% ~ $ 9.69 | IPVA - InterPrivate II Acquisition Corp. (Pre-Deal)
.31% ~ $ 9.72 | BLNG - Belong Acquisition Corp. (Pre-Deal)

Biggest Losers

SEAH took a big hit as it effectively went ex-redemption today (early Monday morning). Shares dipped over 15%.

-15.05% ~ $ 8.24 | SEAH - Sports Entertainment Acquisition Corp (Announced)
-9.21% ~ $ 73.12 | DWAC - Digital World Acquisition Corp. (Announced)
-4.71% ~ $ 8.49 | YSAC - Yellowstone Acquisition Co (Announced)
-4.18% ~ $ 10.55 | GGPI - Gores Guggenheim, Inc (Announced)
-4.01% ~ $ 9.81 | ALSA - Alpha Star Acquisition Corp (Pre-Deal)
-2.79% ~ $ 11.86 | CFVI - CF Acquisition Corp. VI (Announced)
-2.15% ~ $ 10.45 | ESSC - East Stone Acquisition Corporation (Announced)
-2.11% ~ $ 9.72 | LCW - Learn CW Investment Corp (Pre-Deal)
-1.55% ~ $ 9.84 | WALD - Waldencast Acquisition Corp. (Announced)
-1.22% ~ $ 9.75 | BIOT - Biotech Acquisition Company (Announced)
-1.12% ~ $ 9.71 | RACB - Research Alliance Corp. II (Pre-Deal)
-1.10% ~ $ 9.91 | IPOD - Social Capital Hedosophia Holdings Corp IV (Pre-Deal)
-1.01% ~ $ 9.82 | GLBL - Cartesian Growth Corporation (Announced)
-.92% ~ $ 9.69 | ALCC - AltC Acquisition Corp. (Pre-Deal)
-.90% ~ $ 9.95 | GIIX - GORES HOLDINGS VIII, INC. (Announced)
-.82% ~ $ 9.65 | DNAB - Social Capital Suvretta Holdings Corp. II (Pre-Deal)
-.82% ~ $ 9.67 | PFTA - Portage Fintech Acquisition Corp. (Pre-Deal)
-.81% ~ $ 9.81 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-.80% ~ $ 9.86 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-.72% ~ $ 9.62 | ALPA - ALPHA HEALTHCARE ACQUISITION CORP III (Pre-Deal)