The Biden administration poured $640 million into COVID-19 testing efforts in schools and other facilities, awarded $6.4 billion for nuclear waste management at a federal research center and opened up a $14 billion fighter jet production line in South Carolina. Here are Law360's top picks for government contracts in May.
SPAC IPOs Mixed, DCRN Deal Slightly Rises, IPOE/SoFi Up Next
IPOE fell ahead of its vote tomorrow, while DCRN rose slightly on its deal with Tritium. Of today s SPAC IPOs: 1 rose, and 2 fell.
Author:
This morning
Decarbonization Plus II (DCRN) announced a deal to take Tritium, an Australian EV charge company, public in a $1.4B SPAC deal. The deal has no PIPE and they currently have $403M in trust. The market was, somewhat, pleased with the deal as DCRN rose modestly +1.4%, though it still trades at a sizable discount to NAV at $9.79. This represents
a potential ~6% yield opportunity if you believe that the deal vote (when an investor could redeem its shares) happens within ~4-6 months.
The solicitation for the $50 billion CIO-SP4 contract has a category reserved for middle-tier companies, but details are sparse and some worry that the agency is headed for trouble.
SPACs Close Down Again on a Sleepy Friday
SPACs closed down on the day again, with the average pre-deal SPAC trading at $9.80. No new deals today, with just 4 announced on the week.
Author:
It s definitely been a sad May for SPACS with little good news to get investors excited. That being said, we continue to reiterate our view that the slowdown is positive for the longterm health of the broader SPAC market.
Little activity today with no new mergers getting announced, and just one new IPO traded with
Graf Acquisition Corp. closing down 0.7%. SPACs slid lower, once again, and the average pre-deal SPAC is now trading at $9.80 a steep discount to NAV.