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GS to Offer New SPAC-Linked Product + 4 SPACs to Vote Tomorrow

Reports that GS is offering a new SPAC-linked structured notes. MOTN, RTPY, SWBK and KVSB vote on their mergers Tuesday.

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Goldman Sachs is already a prolific player in the SPAC market as both a leading underwriter and two-time SPAC sponsor. Now, according to a report from Reuters, the investment bank is set to begin offering a new type of SPAC product, or a "SPAC-linked structured note."

The note will be structured as a two year bond that pays interest and gives exposure to SPACs without owning them. Critics of the move cite conflicting interest on the parts of GS who are acting as underwriters on several SPAC IPOs and advisors on several SPAC mergers, due to investors being able to instruct GS to redeem certain SPACs. High redemptions hurt a SPAC merger's chances at completion. 

It remains to be seen how prolific this product becomes, though redemptions have long been a focus / thorn in SPACs when trading at a discount to NAV. If sentiment goes up on a deal (or the market), redemptions will come back down. 

ICYMI, here's our podcast with Matthew Tuttle, who also has rolled out ETF product to give investors exposure to SPACs without owning them directly.

Tuesday's SPAC Votes

3 of the 4 have already pre-released closing expectations and/or redemption results

Reinvent Technology Partners Y (RTPY) expects to close its combination with Aurora Innovation on 11/3 with ~$1.8B cash on its balance sheet. Shares will trade as AUR, and shareholders have the option to withdraw any redemption requests by 11/2. RTPY closed at $9.99.

Switchback II Corporation (SWBK) expects to close its combination with Bird Rides on 11/4, and subsequently start trading as BRDS. The company expects $384M of proceeds, or ~41% in redemptions. SWBK closed at $10.00

Khosla Ventures Acquisition Co. II (KVSB) expects to close its transaction with Nextdoor on 11/5. Proceeds of $633M from $270M PIPE and $363.3 from trust are expected, meaning ~12.7% of the trust redeemed on the vote. KVSB is allowing redemption withdrawal requests until 11/4. Shares will trade as KIND. Khosla's first SPAC, KVSA, has its shareholder vote in two weeks on 11/16. KVSB closed at $10.16. 

Also on the docket tomorrow is Motion Acquisition Corp (MOTN) and its vote on Abulnz. MOTN closed at $10.19 today. 

Today's Price Action

Biggest Gainers

5.65% ~ $ 12.90 | DCRC - Decarbonization Plus Acquisition Corporation III (Announced)
4.88% ~ $ 13.11 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
4.37% ~ $ 11.46 | CND - Concord Acquisition Corp (Announced)
3.50% ~ $ 10.36 | DGNS - DRAGONEER GR OP (Announced)
2.39% ~ $ 12.85 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
2.25% ~ $ 10.00 | ORIA - Orion Biotech Opportunities Corp. (Pre-Deal)
2.24% ~ $ 10.96 | GGPI - Gores Guggenheim, Inc (Announced)
1.54% ~ $ 9.88 | TRON - CORNER GROWTH ACQUISITION CORP. 2 (Pre-Deal)
1.41% ~ $ 10.09 | SVFA - SVF Investment Corp. (Pre-Deal)
1.26% ~ $ 10.45 | IVAN - Ivanhoe Capital Acquisition Corp (Announced)
1.09% ~ $ 10.20 | DYNS - Dynamics Special Purpose Corp. (Pre-Deal)
1.07% ~ $ 10.40 | CBAH - CBRE Acquisition Holdings, Inc. (Announced)
1.02% ~ $ 9.90 | CCVI - Churchill Capital Corp VI (Pre-Deal)
1.00% ~ $ 10.09 | REVE - Alpine Acquisition Corp. (Pre-Deal)
.99% ~ $ 10.21 | AGCB - Altimeter Growth Corp. 2 (Pre-Deal)
.95% ~ $ 10.19 | MOTN - Motion Acquisition Corp (Announced)
.93% ~ $ 9.75 | ALPA - ALPHA HEALTHCARE ACQUISITION CORP III (Pre-Deal)
.89% ~ $ 10.21 | FSII - FS Development Corp. II (Announced)

Biggest Losers

-10.23% ~ $ 60.82 | DWAC - Digital World Acquisition Corp. (Announced)
-8.87% ~ $ 9.25 | GNRS - GREENROSE ACQUISITION CORP (Announced)
-3.44% ~ $ 10.96 | FTCV - FinTech Acquisition Corp. V (Announced)
-3.26% ~ $ 12.18 | AGC - Altimeter Growth Corp. (Announced)
-3.05% ~ $ 9.85 | ALCC - AltC Acquisition Corp. (Pre-Deal)
-1.91% ~ $ 9.78 | BNNR - Banner Acquisition Corp. (Pre-Deal)
-1.69% ~ $ 12.81 | FST - FAST ACQ CP (Announced)
-1.43% ~ $ 10.37 | BENE - Benessere Capital Acquisition Corp. (Pre-Deal)
-1.11% ~ $ 10.68 | MCMJ - Merida Merger Corp. I (Announced)
-.91% ~ $ 10.86 | FPAC - Far Peak Acquisition Corp (Announced)
-.87% ~ $ 9.88 | GLTA - Galata Acquisition Corp (Pre-Deal)
-.79% ~ $ 9.65 | WAVC - Waverley Capital Acquisition Corp. 1 (Pre-Deal)
-.68% ~ $ 10.16 | KVSB - Khosla Ventures Acquisition Co. II (Announced)
-.65% ~ $ 9.73 | TRCA - Twin Ridge Capital Acquisition Corp. (Pre-Deal)
-.61% ~ $ 9.70 | ESM - ESM Acquisition Corporation (Pre-Deal)
-.61% ~ $ 9.82 | GSEV - Gores Holdings VII (Pre-Deal)
-.61% ~ $ 9.82 | GIIX - GORES HOLDINGS VIII, INC. (Pre-Deal)
-.60% ~ $ 9.91 | TUGC - TradeUP Global Corp (Announced)
-.60% ~ $ 11.62 | TPGY - TPG Pace Beneficial Finance Corp (Announced

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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)