A well-known team from SPAC is launching a $ 1.5 billion offer that could be highly expected by investors due to its history in space.
Spinning Eagle Acquisition Corp: A new SPAC called Spinning Eagle Acquisition Corp filed for registration on December 23.
SPAC plans to sell 150 million units at $ 10 each to raise $ 1.5 billion. Each unit will include a fifth of a $ 11.50 common share purchase guarantee. Subscribers will have the option to purchase an additional 22.5 million units.
Common shares will be traded as SPNG on Nasdaq and will be available for approximately 52 days after the offer is closed.
The Management Team: Spinning Eagle Acquisition Corp is led by Harry Sloan, Eli Baker and Jeff Sagansky. Sloan, former CEO of the MGM film studio, is serving as CEO and chairman of the board, with Baker serving as president and chief financial officer. Sagansky is a founding investor.
The Sloan and Sagansky duo have been partners in many SPACs over the years, with Baker involved in many of the recent ones.
Sagansky is also part of the team at Falcon Capital Acquisition Corp (NASDAQ: FCAC), a SPAC launched with Treasury Secretary 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).
The Flying Eagle acquisition raised $ 690 million with units that included a third of a warrant in January 2020. The company announced its merger with Skillz, valuing the mobile gaming company at $ 3.5 billion.
The Diamond Eagle acquisition raised $ 400 million in April 2019 with units that also included 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 also did business that included Target Logistics, Williams Scotsman, Global Eagle Entertainment and Videocon, which is now part of Dish TV India.
DraftKings has been one of the best performing SPACs of the year, with shares trading at $ 52.11, an increase of more than 400% over the $ 10 offer price. The shares reached $ 63.78 this year.
Skillz shares are traded at $ 19.02, an increase of 90% over the offer price of $ 10. The shares were traded at $ 22.73 this year.
SPAC target: The new SPAC targets a company that can benefit from the management team. No sector or geographical area is highlighted as a focus, but the process mentions the experience of the management team in media and entertainment.
The team targets a company that is in a high-growth sector and has revenue or earnings growth and free cash flow generation.
If the company cannot find a target company, the plans may include the formation of a separate blank check company, called SpinCo.
Benzinga’s opinion: Given the team’s experience with SPACs and the recent success with DraftKings and Skillz, this will be a highly anticipated SPAC offering.
Units and common shares will have high demand and may be traded at a premium.
Given the size of SPAC, it is one of the biggest offerings in 2020 and can bring a great company. The company’s focus on generating revenue and profits can bring a well-known and growing company that can be welcomed by investors.
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