The SPAC Report - January 2008

Blank Checks Break Out

To say that 2007 was a banner year for SPACs is a gross understatement. In fact, an argument could easily be made that 2007 was the year of the SPAC – a year in which the once red-headed step-child of the public offering market was thrust into the mainstream by bulge-bracket underwriters, household name sponsors and hedge funds with hearty appetites for speculative investments. Full Story

Wall Street has been coming down from a long, intense run of M&A fever. With many bulge-bracket banks writing off upwards of $5 billion in bad loans apiece and the resulting consequences to the credit markets, the frenzied merger pace fueled by private equity firms has cooled to more pragmatic levels. Full Story

A resurgence of SPACs has resulted, in large part, from stronger protections for public investors and additional management investments. Sponsor warrants are practically standard, ranging from as little as several hundred thousand dollars to as much as $12 million, or 3% to 5% of the amount placed in escrow after a public offering. Full Story

• Second SPAC to File on Euronext
• Conversion Limits Become Commonplace
• Israeli SPAC Strikes Deal with Graphic Designer
• Platinum Partners Steps Up SPAC Investment
• Tailwind Financial Buys Hedge Fund
• First and Last $1 Billion SPAC?
• Jefferies Launches Structured Equity Group
• M&A Firm Jumps into SPACs
• Second CBAC Deal May Be Backup Plan
• Endeavor Concedes Shares, Debt
• Hirings & Firings

• SPAC Tracker
• SPAC IPOs in Registration