Golden Nugget/Landry’s is going public via a special purpose acquisition company (SPAC) merger with Fast Acquisition (NYSE:FST) and FST stock was up on the news Monday.
The merger will have its parent company, Fertitta Entertainment, merging with Fast Acquisition. Tilman Fertitta, the sole owner of Fertitta Entertainment, will continue to manage the company as its chairman, president, and CEO after the merger is complete.
After the merger between Fertitta Entertainment closes, Tilman Fertitta will own 60% of the combined company. FST stockholders will own 1% of the company while private investment in public equity (PIPE) investors will own a 35% share. The remaining 4% will belong to public stockholders.
The SPAC merger will value Golden Nugget/Landry’s at $6.6 billion. It will also provide the company with $200 million in gross proceeds held in trust by Fast Acquisition. Adding to that, a PIPE will bring in $1.2 billion right before the deal closes.
Golden Nugget/Landry’s and Fast Acquisition still need approval from owners of FST stock before the deal can close. The current goal has the SPAC merger reaching completion in the second quarter of 2021.
Golden Nugget/Landry’s going public shows that there are no plans for SPAC mergers to slow down in February. January was a record month for SPACs with $26 billion in share sales during the period. More companies are choosing SPACs to go public with over 200 companies going that route during the previous month.
FST stock was up 2% 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.