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A Positive SPAC Week as HZAC Shareholders Approve Deal. BOWX / WeWork is Next.

The SPAC narrative hasn't changed, but it was still an overall positive week for SPACs as, on average, it gained each day. The BOWX / WeWork vote (and redemptions!) next week will have investors' attention.

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Overall not a bad week for SPACs as there wasn't a lot of negative news and, on average, the market closed up each day. That said, the overall narrative remains -- it's a yield play until something big happens (listen: Jonathan Browne on investing in SPACs for yield).

HZAC shareholders approved the Vivid Seats deal today which saw it close up 6.65% at 12.03. It had been up around 14.5% over the last few days on the news that Draftings (DKNG) is making an investment via the HZAC PIPE.

The average discount / premium on SPACs with announced deals is back to almost flat after a strong SPAC week. That average hides a lot though as a majority of SPACs still remain well below NAV and a few strong performers like LOKB, HZAC, LEGO pulling the overall average up. Once LOKB, HZAC, and LEGO close next week we'll see a dip down again.

SPACs with announced deals, on average, are almost back to flat relative to NAV

SPACs with announced deals, on average, are almost back to flat relative to NAV

Deal Announcement Update

October's deal announcements haven't seen any pop, so the narrative there continues to hold as well. If they continue to trade down below $10 then expect the redemptions to keep coming fast and furious.

Oct 15 | $ 9.83 | ADER - 26 Capital Acquisition Corp --> Okada ManilaOct 14 | $ 9.92 | ACEV - ACE Convergence Acquisition Corp --> Tempo Automation
Oct 13 | $ 9.90 | RBAC - RedBall Acquisition Corp. --> SeatGeek
Oct 12 | $ 9.87 | DUNE - Dune Acquisition Corporation --> TradeZero
Oct 07 | $ 9.87 | FMAC - FirstMark Horizon Acquisition Corp --> Starry, Inc.
Oct 05 | $ 9.85 | SNII - Supernova Partners Acquisition Company II, Ltd. --> Rigetti Co, Inc.
Oct 04 | $ 9.92 | HLXA - HELIX ACQUISITION CORP --> MoonLake Immunotherapeutics AG
Oct 04 | $ 9.90 | GBRG - Goldenbridge Acquisition Limited --> AgiiPlus

Today's deal announcement of Okada Manila being valued at $2.6B by 26 Capital Acquisition Corp didn't move investors. It ended the day up only 0.5% at $9.83.

Latest Pod: Vacasa's Matt Roberts on their SPAC Deal with TPGS

Matt Roberts, CEO of Vacasa, joined David Drapkin this week on the Know Who Drives Return podcast. If you are a believer in the future of travel looking more and more like Airbnb then this is one to listen to.

SPAC Vote Calendar

Five SPACs go to vote next week with the BOWX / WeWork merger being the most interesting for the broader investor community to watch. It closed Friday at $10.05 and having come through the Adam Neumann era and COVID (or, at least the initial impacts) it will be very interesting to see what investors make of the long-term prospects for WeWork.

Oct 19 | $ 10.05 | BOWX - BowX Acquisition Corp --> WeWork
Oct 19 | $ 9.99 | GSAH - GS Acquisition Holdings Corp II --> Mirion Technologies
Oct 20 | $ 9.21 | SGAM - Seaport Global Acquisition Corp --> Redbox
Oct 20 | $ 10.10 | BCYP - Big Cypress Acquisition Corp. --> SAB Biotherapeutics
Oct 20 | $ 9.75 | KURI - Alkuri Global Acquisition Corp. --> Babylon
Oct 27 | $ 10.09 | GNRS - GREENROSE ACQUISITION CORP --> Shango Holdings, Future Works, Theraplant, TrueHarvest
Oct 27 | $ 10.12 | TMTS - Spartacus Acquisition Corporation --> NextNav Holdings, LLC
Nov 02 | $ 9.98 | SWBK - Switchback II Corporation --> Bird Rides, Inc.
Nov 02 | $ 9.97 | RTPY - Reinvent Technology Partners Y --> Aurora Innovation, Inc.

In case you missed it, David Drapkin had RTPY / Aurora on the pod this week and it's worth a listen as it comes up on the vote on November 2. Michael Thompson, RTPY's CEO, and Chris Urmson, Aurora's CEO were both great and went into a lot of detail on why they believe the self-driving tech behind RTPY / Aurora is a smart long-term investment.

Friday's SPAC Movers

Biggest SPAC Gainers
10.08% ~ $ 10.92 | MRAC - Marquee Raine Acquisition Corp. (Announced)
6.65% ~ $ 12.03 | HZAC - HORIZON ACQ CP (Announced)
6.42% ~ $ 12.43 | LOKB - Live Oak Acquisition Corp. II (Announced)
3.89% ~ $ 10.95 | AGC - Altimeter Growth Corp. (Announced)
3.69% ~ $ 10.68 | XPDI - Power & Digital Infrastructure Acquisition Corp. (Announced)
2.17% ~ $ 11.75 | LEGO - LEGATO MERGER CORP. (Announced)
2.13% ~ $ 10.05 | BOWX - BowX Acquisition Corp (Announced)
2.06% ~ $ 12.86 | MEKA - MELI Kaszek Pioneer Corp (Pre-Deal)
1.34% ~ $ 9.85 | OEPW - One Equity Partners Open Water I Corp. (Pre-Deal)
1.19% ~ $ 10.23 | CND - Concord Acquisition Corp (Announced)
.93% ~ $ 9.80 | CPAA - Conyers Park III Acquisition Corp. (Pre-Deal)
.72% ~ $ 9.78 | VAQC - Vector Acquisition Corporation II (Pre-Deal)
.69% ~ $ 10.18 | TPGS - TPG Pace Solutions Corp. (Announced)
.62% ~ $ 9.76 | MITA - Coliseum Acquisition Corp. (Pre-Deal)
.62% ~ $ 9.76 | BOAS - BOA Acquisition Corp. (Pre-Deal)
.61% ~ $ 9.73 | TWCB - Bilander Acquisition Corp. (Pre-Deal)
.60% ~ $ 10.00 | GGGV - G3 VRM Acquisition Corp. (Pre-Deal)
.56% ~ $ 12.52 | FST - FAST ACQ CP (Announced)
.51% ~ $ 9.81 | SDAC - Sustainable Development Acquisition I Corp. (Pre-Deal)
.51% ~ $ 9.83 | ADER - 26 Capital Acquisition Corp (Announced)

Biggest SPAC Losers
-8.63% ~ $ 9.21 | SGAM - Seaport Global Acquisition Corp (Announced)
-2.40% ~ $ 9.75 | KURI - Alkuri Global Acquisition Corp. (Announced)
-2.20% ~ $ 9.76 | HCNE - Jaws Hurricane Acquisition Corporation (Pre-Deal)
-2.01% ~ $ 9.75 | MON - Monument Circle Acquisition Corp (Pre-Deal)
-1.51% ~ $ 9.80 | BWC - Blue Whale Acquisition Corp I (Pre-Deal)
-1.03% ~ $ 11.50 | TDAC - Trident Acquisitions Corp (Announced)
-1.02% ~ $ 9.69 | LOKM - Live Oak Mobility Acquisition Corp. (Pre-Deal)
-.72% ~ $ 9.70 | CPAR - Catalyst Partners Acquisition Corp. (Pre-Deal)
-.71% ~ $ 9.73 | ESM - ESM Acquisition Corporation (Pre-Deal)
-.70% ~ $ 9.88 | FOXW - FoxWayne Enterprises Acquisition Corp. (Pre-Deal)
-.62% ~ $ 9.67 | SPTK - SportsTek Acquisition Corp. (Pre-Deal)
-.62% ~ $ 9.69 | GXII - GX Acquisition Corp. II (Pre-Deal)
-.61% ~ $ 9.72 | KLAQ - KL Acquisition Corp (Pre-Deal)
-.61% ~ $ 9.74 | SCAQ - Stratim Cloud Acquisition Corp. (Pre-Deal)
-.60% ~ $ 9.93 | ATSPT - Archimedes Tech SPAC Partners Co (Pre-Deal)
-.60% ~ $ 9.78 | GGMC - Glenfarne Merger Corp. (Pre-Deal)
-.51% ~ $ 9.71 | ACQR - Independence Holdings Corp (Pre-Deal)
-.51% ~ $ 9.71 | GFOR - Graf Acquisition Corp. IV (Pre-Deal)
-.51% ~ $ 9.84 | GIW - GigInternational1, Inc. (Pre-Deal)
-.50% ~ $ 9.95 | FSII - FS Development Corp. II (Announced)

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