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SilverBox Engaged (SBEA) rises 15% on Black Rifle Coffee Pact, Are SPAC Deal Pops Back?

SPAC SilverBox Engaged Merger Corp. I (SBEA) struck a $1.7B deal to take veteran-owned DTC coffee company Black Rifle Public. Plus 4 SPACs voted today.

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Black Rifle Coffee is a veteran-owned and run D2C coffee company that struck a deal with SilverBox Engaged Merger Corp. I (SBEA) to go public at a $1.7B EV valuation. SBEA jumped over +15% on the news, perhaps a Trump boost? Black Rifle has been known to be a predominately pro-Trump brand, who also touts partnerships with the likes of Joe Rogan.

As for the deal itself, the $1.7B valuation is 4.0x 2023E revenue, which is expected to reach $430M in net sales by 2023. The deal carries "$300M in committed equity" which consists of a $100M PIPE, a $100M forward purchase agreement from Engaged Capital, and up to $100M in backstops in case of redemption. Which, if the prices from today's jump hold would be necessary. 

It's no DWAC rocket ship, but almost more encouraging for the SPAC market that the deal pop may be back for real businesses that investors are excited for. Black Rifle has a strong brand and has been growing at a 67% CAGR the last three years. Will see how this story plays out.

SPAC Votes

As we mentioned yesterday, a bit of a marathon day for SPAC votes as 4 shareholder votes were held today. 

Switchback II Corp + Bird Rides, passed, will close and trade 11/4 under the symbol BRDS. The company saw $212.5M in redemptions, or ~67% of its trust account. SWBK closed down over 18% today to $8.17. 

Reinvent Technology Partners Y + Aurora, passed, will close 11/3 and trade 11/4 as AUR. No official number on redemptions yet, they reiterate expectation of $1.8B of cash to work with. Not much price action on RTPY today, $9.94. 

No official word on MOTN or KVSB quite yet, though KVSB did pre-announce its expected closing details yesterday. 

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