Finance of America news for Tuesday includes an initial public offering (IPO) through special purpose acquisition company (SPAC) Replay Acquisition (NYSE:RPLA).
Here’s what potential investors need to know about the SPAC news.
- Finance of America will become a publicly-traded company by merging with Replay Acquisition.
- This plan values the lending company at $1.9 billion.
- The transaction already has $250 million in confirmed support from investors via a private investment in public equity (PIPE) of $10 per share.
- Cash proceeds for the new company include that PIPE funding and $288 million of cash in trust belonging to Replay Acquisition.
- This should allow the company to begin public operations with a minimum of $250 million in cash and cash equivalents.
- One thing worth noting about this SPAC news is the support from Blackstone Tactical Opportunities.
- This is a subsidiary of Blackstone Group (NYSE:BX).
- The Blackstone subsidiary, Replay Acquisition’s public shareholders and management, and entities managed by Finance of America’s founder, will control 70% of the combined company.
- Another thing to note is that more than “half of the sponsor’s founder shares of Replay Acquisition will be deferred and subject to share price hurdles.”
- The deal has the unanimous support of both companies’ Boards of Directors.
- It still needs to complete customary closing conditions.
- That includes getting approval from RPLA shareholders and regulators.
- So long as there are no issues, the deal is set to close in the first half of 2021.
RPLA stock was down almost 1% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.