Stocks largely suffered on Tuesday, not at all helped by Janet Yellen stipulating that rates may need to rise to stave off an overheated economy. The Nasdaq took a beating, and SPAC stocks largely fell as well. Some popular SPACs CCIV (-3.7%), VLDR (-1.1%), TBA (-2.5%) all dropped today amid the markedly risk-off tone in the markets.
As investors saw yesterday with the CF Finance Acquisition Corp (CFAC) repricing its deal with AEye, tech-related SPACs will find the going hard if the rotation out of tech continues. As LIDAR stocks slid post de-SPAC it effectively forced CFAC/AEye to reprice to market. Watch for more of this post-deal announcement and a tempering effect on upfront valuations.
Today, CFAC fell another 3 cents today to an even $10.00. Remember, there is a yield opportunity here as the sponsor added 10 cents/share here to make the trust $10.10/share — the price should bottom there at worst as you September approaches.
Pre-deal SPACs are now trading at an average of $9.90 — 10 cents discounted to NAV. The majority were down again today and given the mood both in SPAC land and now the overall market it is getting harder to find potential events that spur the market forward.
For many, the SPAC market feels a shambles, but savvy SPAC investors will be leveraging the yield + optionality play to bolster their overall portfolio returns SPACs provide a safe and reasonable return (when bought below NAV — lots of options!) So, with rates still low, many will continue to load their baskets up with SPACs at a discount to get the yield and then watch for opportunities to capture upside on deal announcements or post-deal execution news.
Few investors should feel compelled to pay much of a premium for any SPAC at this point. Only those with great sponsors and great deals will be able to support a premium and so if you aren’t in already, dip the toe carefully.
Latin American tech focused Valor Latitude Acquisition Corp (VLATU) priced its $200M IPO 1/3 Warrants. The SPAC is sponsored by Valor Capital, and closed slightly up to $10.03.
Experience Investment Corp (EXPC) fell as low as $9.60 one day ahead of its merger vote to approve deal with Blade Urban Mobility. Appears to be another case of a SPAC having just gone ex-redemption and thus losing its $10 floor. Alas, EXPC recovered a bit and closed at $10.00 on the nose.
Biggest SPAC Gainers
6.44% ~ $ 13.05 | VSPR – Vesper Healthcare Acquisition Corp (Announced)
4.93% ~ $ 10.65 | SVFB – SVF Investment Corp. 2 (Pre-Deal)
2.19% ~ $ 10.28 | FTOC – FTAC Olympus Acquisition Corp (Announced)
1.87% ~ $ 13.61 | RSVA – Rodgers Silicon Valley Acquisition Corp (Announced)
1.52% ~ $ 10.00 | ENNV – ECP Environmental Growth Opportunities Corp. (Pre-Deal)
1.43% ~ $ 9.93 | NAAC – North Atlantic Acquisition Corporation (Pre-Deal)
1.31% ~ $ 10.05 | OMEG – Omega Alpha SPAC (Pre-Deal)
1.27% ~ $ 11.13 | FTCV – FinTech Acquisition Corp. V (Announced)
1.21% ~ $ 10.01 | AVAN – Avanti Acquisition Corp (Pre-Deal)
1.21% ~ $ 9.97 | ANAC – Arctos NorthStar Acquisition Corp. (Pre-Deal)
Biggest SPAC Decliners
-6.73% ~ $ 11.08 | SRAC – Stable Road Acquisition Corp. (Announced)
-5.00% ~ $ 10.08 | CCVI – Churchill Capital Corp VI (Pre-Deal)
-4.51% ~ $ 16.95 | NGA – NORTHERN GN ACQ (Announced)
-3.78% ~ $ 14.75 | RICE – Rice Acquisition Corp. (Announced)
-3.72% ~ $ 19.17 | CCIV – Churchill Capital Corp IV (Announced)
-3.56% ~ $ 17.05 | MUDS – Mudrick Capital Acquisition Corporation II (Announced)
-3.55% ~ $ 16.01 | TPGY – TPG Pace Beneficial Finance Corp (Announced)
-3.23% ~ $ 11.99 | CLII – Climate Change Crisis Real Impact I Acquisition Corp (Announced)
-3.18% ~ $ 36.38 | BRPA – Big Rock Partners Acquisition Corp (Announced)
-2.78% ~ $ 12.95 | TDAC – Trident Acquisitions Corp (Announced)
-2.50% ~ $ 9.75 | GAPA – G&P Acquisition Corp. (Pre-Deal)
-2.46% ~ $ 10.29 | TBA – Thoma Bravo Advantage (Announced)
-2.33% ~ $ 10.50 | AGCB – Altimeter Growth Corp. 2 (Pre-Deal)
-2.29% ~ $ 9.80 | FRXB – Forest Road Acquisition Corp. II (Pre-Deal)
-2.29% ~ $ 9.81 | SBEA – SilverBox Engaged Merger Corp I (Pre-Deal)
-2.22% ~ $ 9.70 | IPVA – InterPrivate II Acquisition Corp. (Pre-Deal)
-2.04% ~ $ 12.94 | CMLF – CM Life Sciences Inc (Announced)
-2.01% ~ $ 10.48 | HSAQ – Health Sciences Acquisitions Corporation 2 (Pre-Deal)
-2.00% ~ $ 9.80 | SCAQ – Stratim Cloud Acquisition Corp. (Pre-Deal)
-1.70% ~ $ 9.83 | FLAC – Frazier Lifesciences Acquisition Corporation (Pre-Deal)
Recent Merger Announcements
May 03 | $ 9.90 | MAAC – Montes Archimedes Acquisition Corp –> Roivant Sciences
Apr 30 | $ 9.94 | GMII – Gores Metropoulos II, Inc. –> Sonder Holdings Inc.
Apr 28 | $ 10.04 | GLEO – Galileo Acquisition Corp. –> Shapeways, Inc.
Apr 28 | $ 9.95 | MRAC – Marquee Raine Acquisition Corp. –> Enjoy Technology, Inc.
Apr 27 | $ 10.05 | BLUW – Blue Water Acquisition Corporation –> Clarus Therapeutics
Apr 25 | $ 10.28 | SEAH – Sports Entertainment Acquisition Corp –> Super Group
Apr 22 | $ 9.97 | HZAC – HORIZON ACQ CP –> Vivid Seats Inc.
Apr 22 | $ 10.92 | FWAA – Fifth Wall Acquisition Corp. I –> SMARTRENT.COM, INC.
Apr 19 | $ 10.10 | DBDR – Roman DBDR Tech Acquisition Corp. –> CompoSecure Holdings, L.L.C.
Apr 15 | $ 9.92 | DEH – D8 Holdings Corp. –> Vicarious Surgical Inc.
Apr 15 | $ 9.88 | CHFW – Consonance-HFW Acquisition Corp –> Surrozen, Inc.
Apr 14 | $ 10.41 | ROCC – Roth CH Acquisition II Co. –> Reservoir Holdings, Inc.
Apr 14 | $ 11.80 | BCTG – BCTG Acquisition Corp. –> Tango Therapeutics
Apr 13 | $ 13.00 | AGC – ALTIMETER GROWTH CORP –> Grab
Apr 08 | $ 9.91 | TWCT – TWC Tech Holdings II Corp –> Cellebrite
Apr 08 | $ 14.75 | RICE – Rice Acquisition Corp. –> Aria Energy & Achaea Energy
Apr 07 | $ 9.93 | CAHC – CA Healthcare Acquisition Corp. –> LumiraDx Ltd
Apr 07 | $ 9.92 | MCAD – Mountain Crest Acquisition Corp. II –> Better Therapeutics
Apr 06 | $ 9.92 | ROT – Rotor Acquisition Corp –> SARCOS CORP.
Apr 06 | $ 17.05 | MUDS – Mudrick Capital Acquisition Corporation II –> The Topps Company
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