Perella Weinberg is preparing for a merger with special purpose acquisition company (SPAC) FinTech IV (NASDAQ:FTIV).
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Here’s everything potential investors need to know about the Perella Weinberg SPAC merger.
- Starting off, Perella Weinberg is a global independent advisory firm that offers strategic and financial advice to its clients.
- It has offices in the U.S. and Europe.
- FinTech IV is a SPAC company created with the sole purpose of finding a merger target to take public.
- Betsy Cohen, a business entrepreneur, serves as the chairman of the board for the company.
- The SPAC merger implies a value of $975 million for Perella Weinberg.
- It will also provide the company with $355 million in funding to make use of.
- $230 million of this comes from cash held by FinTech IV.
- The remaining $125 comes from a private investment in public equity (PIPE).
- Perella Weinberg plans to use the funds to pay off its debts.
- It also expects to use up to $110 million to “redeem a portion of ownership interests tendered for redemption by certain non-working PWP equity holders.”
- The company says that this will allow it to go public with no debt on its balance sheet and access to additional funds through a revolving credit facility.
- So long as there are no issues, the deal is set to close in the first half of 2021.
- When the Perella Weinberg SPAC merger closes, shares of FTIV stock will no longer trade on the Nasdaq Exchange.
- Instead, these shares will be replaced by shares of PWP stock.
FTIV stock was up 3.9% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
