At the close yesterday the average pre-deal SPAC was at $9.87 -- even further from NAV than investors have seen in a long time. Even worse, the three morning deals all closed lower:
- Star Peak II (STPC) -2.7% to $9.93
- Hennessy Capital 5 (HCIC) -1.0% to $9.90
- LIV Capital (LIVK) -0.1% to $9.99
Today's two deal announcements are mega deals and could potentially turn the tide, but given the market's overall state and SPACs still being clogged, it will take a lot.
Deal 1: SRNG - Soaring Eagle Acquisition Corp. --> Ginkgo Bioworks
Soaring Eagle Acquisition Acquisition Corp (SRNG) has struck a $15B SPAC deal to take cell programming company Ginkgo Bioworks public. Its 7th SPAC deal for the Eagle Equity team of DraftKings (DKNG) fame (among others).
Although the deal was rumored for awhile, SRNG shares closed sub-nav yesterday, and are just up slightly +1% in pre-market. SRNGW warrants are surging, up over 24% pre-market to $2.45
Deal 2: AURC - Aurora Acquisition Corp. --> Better
This is a fast deal as Aurora (sponsored by Novator Capital) just IPO'd on March 8 of this year. Better is a fully digital homeownership platform that is able to offer improved customer experiences and costs through its technology platform.
SoftBank is leading a $1.5B PIPE and Novator Capital has committed to backstop any redemptions. Investors will be pleased to see both. Further showing commitment to long-term shareholders, the deal includes:
- Aurora's sponsor will voluntarily forfeit 50% of its private placement warrants and modify the remaining 50% to be redeemable at $18.00 per share
- Aurora’s sponsor also has agreed that 20% of its founder shares will be subject to price-based vesting
- Major stockholders, members of Better’s Board of Directors, and key executives of Better have agreed to enter into lock-up agreements
Investors will look closely at the financials, but will be glad to see existing revenue and forecasts only a few years out vs. some of the more speculative SPAC deals that have come through this year.
Recent Deals are Struggling
Today's deals are going into major SPAC and overall market headwinds. Looking at recent deals since late April, most are effectively at or below NAV.
May 10 | $ 9.89 | AUS - Austerlitz Acquisition Corporation I --> Wynn Interactive
May 10 | $ 9.90 | HCIC - Hennessy Capital Investment Corp. V --> Plus
May 10 | $ 9.93 | STPC - Star Peak Corp II --> Benson Hill, Inc.
May 10 | $ 9.96 | LIVK - LIV Capital Acquisition Corp. --> AgileThought
May 07 | $ 9.87 | LOKB - Live Oak Acquisition Corp. II --> Navitas Semiconductor
May 07 | $ 10.30 | LSAQ - LIFE SCI ACQ II --> Science 37
May 07 | $ 9.86 | STWO - ACON S2 Acquisition Corp --> ESS TECHNOLOGY
May 06 | $ 9.91 | AMHC - Amplitude Healthcare Acquisition Corporation --> Jasper Therapeutics
May 03 | $ 9.93 | MAAC - Montes Archimedes Acquisition Corp --> Roivant Sciences
Apr 30 | $ 9.97 | GMII - Gores Metropoulos II, Inc. --> Sonder Holdings Inc.
Apr 28 | $ 9.90 | MRAC - Marquee Raine Acquisition Corp. --> Enjoy Technology, Inc.
Apr 28 | $ 10.00 | GLEO - Galileo Acquisition Corp. --> Shapeways, Inc.
Apr 27 | $ 10.05 | BLUW - Blue Water Acquisition Corporation --> Clarus Therapeutics
Apr 25 | $ 10.13 | SEAH - Sports Entertainment Acquisition Corp --> Super Group
Apr 22 | $ 10.07 | HZAC - HORIZON ACQ CP --> Vivid Seats Inc.
Apr 22 | $ 10.90 | FWAA - Fifth Wall Acquisition Corp. I --> SMARTRENT.COM, INC.
Tuesday SPAC Opportunities
Buy the Dip? Monday's Biggest Decliners
-9.25% ~ $ 10.89 | CMII - CM Life Sciences II Inc. (Announced)
-8.45% ~ $ 11.05 | CMLF - CM Life Sciences Inc (Announced)
-5.78% ~ $ 15.00 | SSPK - Silver Spike Acquisition Corp. (Announced)
-5.45% ~ $ 12.50 | RSVA - Rodgers Silicon Valley Acquisition Corp (Announced)
-4.79% ~ $ 11.54 | THCB - Tuscan Holdings Corp. (Announced)
-4.73% ~ $ 11.48 | FSRV - FinServ Acquisition Corp (Announced)
-4.72% ~ $ 14.73 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-4.45% ~ $ 10.30 | LSAQ - LIFE SCI ACQ II (Announced)
-3.99% ~ $ 15.88 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-3.91% ~ $ 31.97 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-3.85% ~ $ 14.98 | ACTC - ArcLight Clean Transition Corp (Announced)
-3.69% ~ $ 11.22 | CLII - Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-3.61% ~ $ 11.76 | TDAC - Trident Acquisitions Corp (Announced)
-3.46% ~ $ 10.61 | VIH - VPC Impact Acquisition Holdings (Announced)
-3.44% ~ $ 8.70 | EXPC - Experience Investment Corp (Announced)
-3.32% ~ $ 18.64 | CCIV - Churchill Capital Corp IV (Announced)
-3.23% ~ $ 10.50 | LEAP - Ribbit LEAP Ltd (Pre-Deal)
-3.06% ~ $ 10.76 | ARYD - ARYA Sciences Acquisition Corp IV (Pre-Deal)
-3.00% ~ $ 9.70 | FRSG - First Reserve Sustainable Growth Corp (Pre-Deal)
-2.93% ~ $ 10.92 | PSAC - Property Solutions Acquisition Corp (Announced)
Yield Opportunities / SPACs at the Largest Discounts
For those looking for yield plays, there are a lot of SPACs trading below NAV and these are some of the largest discounts.
-4.00% ~ $ 9.60 | DTOC - Digital Transformation Opportunities Corp. (Pre-Deal)
-3.80% ~ $ 9.62 | BGSX - Build Acquisition Corp. (Pre-Deal)
-3.40% ~ $ 9.66 | PUCK - Goal Acquisitions Corp. (Pre-Deal)
-3.40% ~ $ 9.66 | PTOC - Pine Technology Acquisition Corp. (Pre-Deal)
-3.30% ~ $ 9.67 | SLCR - Silver Crest Acquisition Corporation (Pre-Deal)
-3.30% ~ $ 9.67 | HCCC - Healthcare Capital Corp. (Pre-Deal)
-3.30% ~ $ 9.67 | TWLV - Twelve Seas Investment Company II (Pre-Deal)
-3.20% ~ $ 9.68 | SVOK - Seven Oaks Acquisition Corp. (Pre-Deal)
-3.20% ~ $ 9.68 | HCAR - Healthcare Services Acquisition Corporation (Pre-Deal)
-3.20% ~ $ 9.68 | SPTK - SportsTek Acquisition Corp. (Pre-Deal)
-3.20% ~ $ 9.68 | NBST - Newbury Street Acquisition Corporation (Pre-Deal)
-3.20% ~ $ 9.68 | CLAA - Colonnade Acquisition Corp. II (Pre-Deal)
-3.20% ~ $ 9.68 | FLME - Flame Acquisition Corp. (Pre-Deal)
-3.10% ~ $ 9.69 | ARRW - Arrowroot Acquisition Corp. (Pre-Deal)
More from Boardroom Alpha
For on-going tracking, analytics, and data on SPACs checkout Boardroom Alpha's SPAC Data and Analytics service.
- SPAC Deals and IPOE/SoFi Momentum
- Live Oak Acquisition II (LOKB) Taking Navitas Public in $1B SPAC Deal
- ACON S2 (STWO) Taking ESS Public in $1.1B SPAC Deal
- SPACs Get Beat Up Again
- Will Honest's IPO Take More Shine off SPACs?
- Tech Sell Off will Hit SPAC Stocks Hard
- Tuesday SPAC Ideas
- SPAC Activity Returns, Met with Lukewarm Response
- SPAC IPOs Return, and Flop
- A (small) Pickup in SPAC Activity & De-SPAC Returns
- GLEO and MRAC SPAC Deals Fall Flat
- Two SPAC Deals & 2021 Vintage SPACs are Cheap
- SPAC Mergers: GLEO and MRAC Strike Deals
- Remember SPACs? Market Focuses on Earnings
- Cathie Wood's ARK Sells former Chamath SPAC Virgin Galactic
(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report.)