The Nightcap from SPAC Track
Nightly recap of the day's SPAC highlights (May 24th, 2021)
May 24th, 2021
Good evening,
Thanks for reading “The Nightcap”, a nightly recap of the highlights of the SPAC world. You can always discover and track all of the SPACs at spactrack.net.
The Stats:
The Deals:
An after-hours deal:
1) Legato Merger Corp. (LEGO) & Algoma Steel.
Algoma Steel and Legato Merger Corp. Sign Definitive Merger Agreement
Transaction to result in Algoma Steel becoming a publicly listed company.
At $10.00 per share of Legato common stock, this all-stock transaction values the combined company at an enterprise value of approximately $1.7 billion including contingent consideration.
At an enterprise value of approximately $1.7 billion including contingent consideration, the combined company would be valued at 1.9x expected calendar year 2021 Adjusted EBITDA of $901 million.
Transaction expected to provide Algoma Steel with $306 million of capital, including a $100 million fully committed private placement with key investors.
New equity capital will provide Algoma Steel with flexibility to continue with strategic and transformational investments in the business, including the potential for a substantial investment in electric arc steelmaking which would enhance earnings potential and substantially reduce Algoma's carbon footprint by approximately 70%.
Deal News Reports:
1) GigCapital4 Inc. (GIG) is in talks to merge with BigBear.ai.
AI Specialist BigBear Is In Merger Talks With GigCapital4 SPAC
The special purpose acquisition company is seeking to raise equity and convertible debt to support a deal that’s set to value the combined entity at more than $1.5 billion, said one of the people. Terms could change and as with all transactions that aren’t yet finalized, it’s possible talks could collapse.
Columbia, Maryland-based BigBear’s projected 2021 revenue is $150 million to $200 million, one of the people said. The company says it is a provider of artificial intelligence and machine learning, advanced analytics, data science and management to U.S. government clients including the Department of Defense and intelligence agencies.
BigBear, led by Reggie Brothers, was formed through the merger of NuWave Solutions and PCI Strategic Management, portfolio companies of private equity firm AE Industrial Partners LP, according to a February statement. AE acquired both companies last year.
New S-1 Filings:
1) Mountain Crest Acquisition Corp. IV (MCAF)
$50M, 1 R (1/10)
Sponsor’s Previous SPAC Activity: Mountain Crest Acquisition Corp (MCAC) merged with PLBY Group (PLBY; Formerly Playboy Enterprises) in February. PLBY closed the day at $42.49.
IPOs to Begin Trading Tomorrow:
1) Fifth Wall Acquisition Corp. III (FWAC)
$250M, no warrants
Focus: Real Estate, Proptech (non-residential)
Management:
Brendan Wallace (Co-founder & Managing Partner at Fifth Wall)
Sponsor’s Previous SPAC Activity: Fifth Wall Acquisition Corp. I (FWAA) announced a merger deal with SmartRent last month. FWAA closed the day at $10.72.
Upcoming Dates:
This Week’s Shareholder Meetings and Unit Splits (common shares and warrants to commence trading separately from underlying units)
Thursday, May 27th
Social Capital Hedosophia Holdings Corp. V (IPOE) Shareholder Meeting to Approve Business Combination with SoFi
Friday, May 28th
Northern Star Acquisition Corp. (STIC) Shareholder Meeting to Approve Business Combination with Barkbox
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