SPACs Turn to Financings to Plug Redemptions

Plus GMBT, SPAQ rise modestly on announced deals. IPOs trade down, and no end in sight for high redemptions.
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The SPAC IPOs keep coming, but many serious SPAC questions remain. A slew of issues are facing the more than 420 SPACs still searching for a target and the 150 SPACs that have found a target, but are waiting to close.

Among the most important is deal financing. As we've spoken about before, redemptions are skyrocketing, leaving just a tiny portion of many SPAC trusts. And while many target companies seem to be (perhaps irresponsibly) waiving minimum cash requirements, these companies still need cash to operate and grow their businesses - isn't that part of the very point of going public via SPAC, the capital raise?

ICYMI: More SPAC Questions

This dynamic has resorted to some creative post deal announcement financings, most recently:

  • A new PIPE for Decarbonization Plus Acquisition Corporation II (DCRN), backed by Palantir 
  • Up to $120M in a convert to cover redemptions from Cerberus Telecom Acquisition Corp. (CTAC) 

Look out for more of the same as SPACs continue to trade sub NAV, and deal sources and uses will be a lot lighter on the "sources" column than originally anticipated.

On the Rumor Front

GigInternational1 (GIW) closed down ~3% today to $9.80. 

Today's IPOs

While it might seem surprising that deals are still getting priced in this environment, they are still coming and trading rather poorly.

Today's 3: Alpha Partners Technology Merger (APTU), Mercury Ecommerce Acquisition Corp (MEACU), and DA32 Life Science Tech Acquisition Corp (DALSU) dropped 1.2%, 0.9%, and 1.6% respectively. 

Today's Mergers

Queens Gambit Growth Capital (GMBT), the 100% female-led SPAC, rose modestly +1.86% on news of its announced deal with Swvl

Apollo-backed Spartan Acquisition Corp. III (SPAQ) similarly rose 1.86% to $9.88 on news of its deal to take Allego public. 

Upcoming Votes

Jul 29 | $ 9.83 | RTPZ - Reinvent Technology Partners Z --> Hippo Enterprises Inc.
Jul 29 | $ 9.36 | DGNR - Dragoneer Growth Opportunities Corp --> CCC Information Services Inc.
Jul 30 | $ 9.24 | TWND - Tailwind Acquisition Corp --> QOMPLX, Inc.
Aug 05 | $ 9.97 | RTP - Reinvent Technology Partners --> Joby Aviation
Aug 05 | $ 10.00 | PDAC - Peridot Acquisition Corp --> Li-Cycle Corp
Aug 09 | $ 9.95 | BCTG - BCTG Acquisition Corp. --> Tango Therapeutics

Today's Price Action

Biggest Gainers

4.21% ~ $ 9.91 | NEBC - Nebula Caravel Acquisition Corporation (Announced)
2.86% ~ $ 9.36 | DGNR - Dragoneer Growth Opportunities Corp (Announced)
2.81% ~ $ 12.42 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
2.25% ~ $ 10.23 | LAAA - Lakeshore Acquisition I Corp. (Pre-Deal)
1.92% ~ $ 10.10 | CHAQ - Chardan Healthcare Acquisition 2 Corp. (Announced)
1.86% ~ $ 9.88 | SPAQ - Spartan Acquisition Corp. III (Announced)
1.65% ~ $ 9.84 | GMBT - Queen’s Gambit Growth Capital (Announced)
1.55% ~ $ 9.83 | RTPZ - Reinvent Technology Partners Z (Announced)
1.34% ~ $ 9.80 | PMGM - Priveterra Acquisition Corp. (Pre-Deal)
1.28% ~ $ 10.25 | BTNB - Bridgetown 2 Holdings Limited (Announced)
1.14% ~ $ 9.75 | TWNI - Tailwind International Acquisition Corp. (Pre-Deal)
1.08% ~ $ 10.27 | GLSPU - Global SPAC Partners Co. (Pre-Deal)
1.04% ~ $ 9.75 | AMPI - Advanced Merger Partners, Inc. (Pre-Deal)
1.03% ~ $ 9.79 | CSTA - Constellation Acquisition Corp I (Pre-Deal)
1.03% ~ $ 9.80 | ORIA - Orion Biotech Opportunities Corp. (Pre-Deal)
.93% ~ $ 9.79 | LGAC - LAZARD GROWTH ACQUISITION CORP. I (Pre-Deal)
.85% ~ $ 10.74 | AGC - ALTIMETER GROWTH CORP (Announced)
.81% ~ $ 9.95 | RXRA - RXR Acquisition Corp (Pre-Deal)
.78% ~ $ 9.78 | LCA - Landcadia Holdings IV, Inc. (Pre-Deal)
.77% ~ $ 9.83 | FVIV - Fortress Value Acquisition Corp. IV (Pre-Deal)

Biggest Losers

-2.97% ~ $ 9.80 | GIW - GigInternational1, Inc. (Pre-Deal)
-2.13% ~ $ 9.66 | GGMC - Glenfarne Merger Corp. (Pre-Deal)
-2.12% ~ $ 9.69 | TLGA - TLG Acquisition One Corp. (Pre-Deal)
-2.06% ~ $ 10.00 | PDAC - Peridot Acquisition Corp (Announced)
-1.93% ~ $ 9.66 | RCLF - Rosecliff Acquisition Corp I (Pre-Deal)
-1.72% ~ $ 10.28 | VACQ - Vector Acquisition Corp (Announced)
-1.62% ~ $ 9.69 | TSPQ - TCW Special Purpose Acquisition Corp (Pre-Deal)
-1.51% ~ $ 9.80 | CCV - Churchill Capital Corp V (Pre-Deal)
-1.41% ~ $ 9.78 | OHPA - Orion Acquisition Corp. (Pre-Deal)
-1.41% ~ $ 9.80 | GOBI - Gobi Acquisition Corp. (Pre-Deal)
-1.28% ~ $ 10.80 | TDAC - Trident Acquisitions Corp (Announced)
-1.23% ~ $ 9.63 | DHBC - DHB Capital Corp. (Pre-Deal)
-1.12% ~ $ 9.67 | TETC - Tech and Energy Transition Corporation (Pre-Deal)
-1.12% ~ $ 9.73 | FVAM - 501 ACQ CORP (Pre-Deal)
-1.01% ~ $ 9.85 | MAQC - Maquia Capital Acquisition Corporation (Pre-Deal)
-.97% ~ $ 10.25 | BLSA - BCLS Acquisition Corp. (Pre-Deal)
-.94% ~ $ 9.83 | IPVI - InterPrivate IV InfraTech Partners Inc. (Pre-Deal)
-.92% ~ $ 9.65 | ANZU - Anzu Special Acquisition Corp I (Pre-Deal)

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