Sunlight Financial SPAC Merger: 12 Things to Know About the Solar Play as SPRQ Stock Soars

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.

An orange slanted roof covered in solar panels.

Source: Shutterstock

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.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC