TPGY/EVBox Deal Falling Apart Would be a Big Blow to SPACs

The most concerning news is that the TPGY/EVBox SPAC deal may fall apart. Altimar's Blue Owl is expected to close May 19. Today's 3 IPOs traded down as expected.
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This morning we discussed the 3 new IPOs that were set to trade today, and there were no surprises with each closing at or below NAV. Some thought -- probably more hoped than truly believed --that Catalyst Partners (CPAR), utilizing Goldman's shareholder friendly SOAR structure, would have traded up yet it closed down slightly. 

It was an overall risk-off day in equity markets broadly, thus it's tough to read to much into day-1 closing prices. But, what is clear is that the market is not yet ready for more SPAC IPOs, and rather want the market to clear. So, the fast money IPO trade will remain a distant memory for the foreseeable future.

Today's SPAC IPOs Closing Prices:

  • Catalyst Partners (CPAR/U): $9.93
  • Mountain Crest III (MCAE/U): $10.00
  • Angel Pond (POND/U): $9.85

Altimar Acquisition Corp held its shareholder vote on its Owl Rock/Dyal combination to form Blue Owl Capital. The vote passed and the merger is expected to close May 19. It was not immediately clear from the company's filings whether any shareholders elected to redeem. ATAC closed down another -1% to $9.75. 

Attention now turns to HPS Investments Partners' two other SPACs in the Altimar Series, ATAQ and ATMR. Both are still searching for deals and can be scooped up at discounted prices of $9.90 and $9.80 respectively. 

SPAC Deal at Risk of Falling Apart

Potentially the biggest SPAC news today is that the TPG Pace Beneficial (TPGY) / EVBox merger may be falling apart. It plunged -12.5% following an 8-K that called doubt as to whether their deal with EVBox will ultimately be completed. From the outside it seems like providing solid, audited financials as it gets carved out of Engie is proving difficult. It now seems very unlikely that the deal will be consummated by the original June estimate, and there is some doubt it will be completed at all. 

This is could be another significant blow to the overall SPAC market as it could throw more fuel on the fire regarding deal valuations/financials, SPAC complexities, and an overall level of distrust. The once darling deal (shares peaked ~$30) are now down to $12.27.

Biggest SPAC Decliners
-12.54% ~ $ 12.27 | TPGY - TPG Pace Beneficial Finance Corp (Announced)
-11.19% ~ $ 18.41 | BRPA - Big Rock Partners Acquisition Corp (Announced)
-3.85% ~ $ 10.11 | RACB - Research Alliance Corp. II (Pre-Deal)
-3.69% ~ $ 9.65 | GAMC - Golden Arrow Merger Corp. (Pre-Deal)
-3.58% ~ $ 9.69 | PV - Primavera Capital Acquisition Corporation (Pre-Deal)
-3.36% ~ $ 12.96 | MUDS - Mudrick Capital Acquisition Corporation II (Announced)
-3.00% ~ $ 13.27 | JWS - Jaws Acquisition Corp (Announced)
-2.60% ~ $ 10.50 | BCTG - BCTG Acquisition Corp. (Announced)
-2.32% ~ $ 9.70 | GLBL - Cartesian Growth Corporation (Pre-Deal)
-2.06% ~ $ 12.81 | LACQ - Leisure Acquisition Corp. (Announced)
-2.04% ~ $ 9.75 | HYAC - Haymaker Acquisition Corp. III (Pre-Deal)

Biggest SPAC Gainers
11.16% ~ $ 11.38 | CMII - CM Life Sciences II Inc. (Announced)
9.70% ~ $ 12.21 | FSRV - FinServ Acquisition Corp (Announced)
9.44% ~ $ 16.00 | RICE - Rice Acquisition Corp. (Announced)
8.65% ~ $ 16.20 | ACTC - ArcLight Clean Transition Corp (Announced)
8.53% ~ $ 16.80 | IPOE - Social Capital Hedosophia Holdings Corp V (Announced)
5.87% ~ $ 11.54 | CMLF - CM Life Sciences Inc (Announced)
5.84% ~ $ 19.38 | CCIV - Churchill Capital Corp IV (Announced)
4.96% ~ $ 13.12 | BOWX - BowX Acquisition Corp (Announced)
3.75% ~ $ 11.34 | SRAC - Stable Road Acquisition Corp. (Announced)
3.35% ~ $ 12.04 | FST - FAST ACQ CP (Announced)

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