A well-known SPAC team launches a $ 1.5 billion offer that investors can expect a lot, given their history in space.
Spinning Eagle Acquisition Corp: A new SPAC called Spinning Eagle Acquisition Corp. submitted for registration on 23 December.
The SPAC wants to sell 150 million units at $ 10 each to raise $ 1.5 billion. Each unit contains a fifth of a warrant to buy a common stock at $ 11.50. Underwriters have the option to buy another 22.5 million units.
Ordinary shares will trade as SPNG on the Nasdaq and will be available approximately 52 days after the offer is submitted.
The management team: Spinning Eagle Acquisition Corp is led by Harry Sloan, Eli Baker and Jeff Sagansky. Sloan, former CEO of MGM Film Studio, serves as CEO and chairman, with Baker as president and chief financial officer. Sagansky is a founding member.
The duo of Sloan and Sagansky have been partners in many SPACs over the years, and Baker has been involved in many of the recent ones.
Sagansky is also part of the team at Falcon Capital Acquisition Corp. (NASDAQ: FCAC), a SPAC started by Treasury brother Steven Mnuchin’s brother Alan G. Mnuchin.
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Previous SPACs: The team behind Spinning Eagle Acquisition Corp. has years of experience in the SPAC industry, including two recent success stories with DraftKings Inc. (NASDAQ: DKNG) and Skillz Inc. (NASDAQ: SKLZ).
Flying Eagle Acquisition raised $ 690 million with units that included a third of a January 2020 warrant. The company announced its merger with Skillz and valued the mobile gaming business at $ 3.5 billion.
Diamond Eagle Acquisition raised $ 400 million in April 2019 with units that also contain a third of a warrant. The company merged with DraftKings in a deal that valued the sports betting company at $ 2.7 billion.
The company has also done transactions that include Target Logistics, Williams Scotsman, Global Eagle Entertainment and Videocon, which is now part of Dish TV India.
DraftKings was one of the best-performing SPACs of the year, with shares trading at $ 52.11, more than 400% higher than their $ 10 listing price. Shares traded up to $ 63.78 this year.
Skillz shares are trading at $ 19.02, which is 90% higher than their $ 10 listing price. Shares traded up to $ 22.73 this year.
SPAC target: The new SPAC is aimed at a business that can benefit from the management team. No sector or geographical area is singled out as a focus, but the submission does mention the experience of the management team in media and entertainment.
The team runs a business in a high-growth industry, and has revenue or earnings growth and a free cash flow generation.
If the company does not find a target company, the plans may include setting up a separate blank check company, called SpinCo.
Benzinga’s name: Given the team’s experience with SPACs and recent success with DraftKings and Skillz, this will be a much anticipated SPAC offering.
Units and ordinary shares will be in high demand and can trade at a premium.
Given the size of the SPAC, it is one of the biggest offerings in 2020 and could give it a big company. The company’s focus on revenue and earnings can bring in a well-known and growing company that can be well received by investors.
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