Sunlight Financial is preparing to go public via a special purpose acquisition company (SPAC) merger with Spartan Acquisition II (NYSE:SPRQ) and shares of SPRQ stock are soaring.
Here’s everything investors need to know about Sunlight Financial ahead of the SPAC merger.
- Sunlight Financial is a company that offers financing to residential customers looking to install solar panels.
- It has issued more than $3.5 billion in loans in the residential solar market.
- The company also works with more than 800 solar and home improvement contractors.
- Spartan Acquisition II is a blank-check company sponsored by funds managed by an affiliate of Apollo Global Management (NYSE:APO).
- The SPAC merger between these two will result in a combined company with an estimated implied pro forma equity value of $1.3 billion.
- Prior to the closing of the deal, a collection of investors have committed to a $250 million private investment in public equity (PIPE).
- These investors are led by Chamath Palihapitiya, Coatue, with funds managed by BlackRock (NYSE:BLK), Franklin Templeton (NYSE:BEN) and accounts advised by Neuberger Berman Investment Advisers.
- This will have current Sunlight Finacial shareholders owning 50% after the merger is complete.
- Shareholders of SPRQ stock will hold a 26% stake in the company and 19% will belong to PIPE investors.
- The Boards of Directors for both companies have approved the SPAC merger.
- Now it just needs approval from SPRQ stockholders and regulators.
- So long as there’s no trouble there, the deal will close in the second quarter of 2021.
SPRQ stock was up 29.6% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.