Comprehensive M&A data with integrated detailed company information

Trinity Merger in USD 300mn listing
Posted on Thursday, 12 April 2018 12:41
Trinity Merger, a blank check formed by Trinity Investments to acquire a real estate business, is raising USD 345.00 million through a sale of 34.50 million shares on Nasdaq.

So far this calendar year, there have been 18 initial public offerings (IPOs) announced by special purchase acquisition companies (SPACs) globally, according to Zephyr, the M&A database published by Bureau van Dijk.

At potentially as much as USD 345.00 million, comprising 30.00 million stocks sold at USD 10.00 apiece and an overallotment option for a further 4.50 million units, the listing could be the third-largest listing to date.

Trinity Merger’s leadership team has a track record of investing in the lodging sector, including the acquisition of more than 50 hotels with more than 30,000 keys in the US and abroad, through their respective firms.

Management will look for targets in need of strategic growth capital, will benefit from becoming a publicly listed company or need to repurchase debt, or target strategic acquisitions.

It plans to find candidates with an enterprise value of about USD 750.00 million to USD 2.00 billion and will carry out add-on acquisitions for one or more businesses or assets.

Sponsor HN Investors bought 8.63 million founder shares for USD 25,000 in January and has committed to purchase a total 8.00 million private placement warrants.

The SPAC’s pro forma net tangible book value following the IPO would be USD 0.56 per share, or USD 0.49 on the exercise of the underwriter’s overallotment option.

Its listing represents an immediate dilution to existing stockholders of USD 9.44 apiece, or USD 9.51.

Zephyr shows that of the SPAC IPOs announced this year, eight are by US-incorporated vehicles, including Iron Horse, which is the only one on the New York Stock Exchange, Pure Acquisition, Crescent Funding and Terrapin 4.

© Zephus Ltd