WSJ: SPACs are Back
By David Feldman at 29 September, 2009, 8:56 am
An article in today’s Wall Street Journal (page C1) actually uses the headline “risk is back now,” showing that there remains a particular point of view about SPACs in the media, but such is the lot of the RM world at times. The good news: several SPACs actually completed mergers where none had been able to do so for quite a number of months.
Greenhill’s SPAC completed a $680 million transaction and Tom Hicks’ vehicle closed a $582 million deal recently. DealFlow Media’s SPAC Wire noted, though, that the Hicks deal included offering warrant holders either a restructured warrant or 55 cents each for a buyback. Still, that’s better than taking out all the old money with new money, which some had contemplated.
The article reminds us that about 21 SPACs with $4 billion in assets have to complete deals by the end of the year. But the two deal closings are good news indeed.
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