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Finance of America news for Tuesday includes an initial public offering (IPO) through special purpose acquisition company (SPAC) Replay Acquisition (NYSE:RPLA).

"Going Public" is displayed in white text on a digital ticker tape.

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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.

There’s been an increase in SPAC IPOs in the news of late as more companies embrace the method of going public. While there were 59 SPAC IPOs in 2019, 2020 has already seen 138 take place.

RPLA stock was down almost 1% as of Tuesday



a close up of a clock: "Going Public" is displayed in white text on a digital ticker tape.


© Source: Shutterstock
“Going Public” is displayed in white text on a digital ticker tape.

Finance of America news for Tuesday includes an initial public offering (IPO) through special purpose acquisition company (SPAC) Replay Acquisition (NYSE:RPLA).



a clock on the top of a green screen: "Going Public" is displayed in white text on a digital ticker tape.


© Provided by InvestorPlace
“Going Public” is displayed in white text on a digital ticker tape.

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.

There’s been an increase in SPAC IPOs in the news of late as more companies embrace the method of going public. While there were 59 SPAC

Consumer-lending platform and

Blackstone Group Inc.

portfolio company Finance of America Equity Capital LLC is set to go public with a valuation of $1.9 billion through a blank-check merger, this year’s hottest way to list shares, according to people familiar with the matter.

Finance of America is set to merge with the special-purpose acquisition company, or SPAC,

Replay Acquisition Corp.

, the people said. In conjunction with the merger, institutional investors will also make a private investment of $250 million in the company. In all, the deal will leave the consumer lender’s founder and funds managed by Blackstone with a 70% ownership stake.

SPACs are all the rage in 2020, quickly having become a favored way for companies to go public in a year when initial public offerings are hotter than ever. Their popularity is a sign that there is more demand for newly listed companies than there are companies going public. So far this year, companies have raised more than $109 billion going public in the U.S., surpassing every other full year on record, according to Dealogic, whose data go back to 1995. SPACs have accounted for almost half of that total.

The sole purpose of SPACs, which are also known as blank-check companies, is to raise money to acquire a private target and take it public. Founders of these shell companies pitch their names or expertise in certain industries; once they have raised a certain amount of money they have a specific amount of time, typically two years, to identify a target. Announced deals are subject to shareholder approval. Finance of America’s services include traditional mortgages, reverse mortgages, commercial-real-estate loans and fixed-income investing. It has grown via a series of acquisitions and over the past roughly five years as a portfolio company of Blackstone’s Tactical Opportunities business, which

Investment Thesis

High unemployment rates and financial challenges among small businesses are two big problems that the markets are ignoring. Such problems may have negative impacts on the economy as a whole as small and medium enterprises (SMEs) make the majority of all businesses in America. PS Business Parks (PSB), which have a large tenant base of SMEs, is at risk as small business America struggles to recover. While PSB is an excellent company with desirable qualities, prices do not offer an adequate margin of safety. I rate shares a Hold.

The Elephant In The Room

Back in March, analysts and reporters were having a debate on which letter of the alphabet would illustrate recovery in the next few months or years: J, L, U, V, W, K? Economically speaking, we’re seeing more of an alphabetti spaghetti. E-commerce is having a J-recovery as people are smashing the “Buy now with 1-Click” button in Amazon (AMZN) than ever before. Airlines are having an L-shaped recovery with passenger traffic slowly increasing week-by-week. The entertainment and tourism industry is still in limbo and recovery should look like a U-shape once the vaccine arrives. Restaurants, on the other hand, may face the threat of a double-dip, W-shaped recovery if another lockdown were to happen. In short, we’re seeing disproportionate recovery across all sectors. All this is happening while the stock market is rallying to new all-time highs as if the pandemic did not really happen. So, equity market-wise, we’re looking at a V-shaped recovery… for now.

What is concerning is that the markets are ignoring the elephant in the room: sky-high unemployment rate. Yes, the number is improving from its high of 14.7% in April. However, weekly initial jobless claims have remained at about 800,000 for nearly two months, showing a significant deceleration in

Nissan is done selling its NV line of commercial and passenger vans in the U.S. and Canada, Automotive News reported Friday, confirming a move that AN reported a few months ago. The automaker is going to push its sedans and SUVs for fleet sales instead.

Nissan will end production of its full-size NV vans in Canton, Miss., and the compact NV200 in Cuernavaca, Mexico, next summer.

A few factors went into the decision, not the least of which is Ford’s dominance in commercial vans. Nissan sold just under 39,000 units of the NV and NV200 in North America last year — while Ford sold just under a quarter of a million of the Transit and Transit Connect. In market share, Ford has nearly half of all large van sales, with Chevy taking a quarter, according to the Automotive News Data Center. Nissan’s market share? It’s 4.9 percent.

The other factor: The Titan pickup was not a strong seller (though the Frontier is a popular fleet truck), and companies would prefer to buy their trucks and vans from the same source. There again, the Ford has the F-150.

Nissan’s previous commercial sales program offered limited models. Now it will launch a program called Business Advantage that will market all its other vehicles to government and business fleets — all models but the GT-R, AN says, though we can’t imagine too many fleets would be interested in the 370Z, either.

A purchase of just two vehicles from the Business Advantage Program will land commercial customers a volume discount and other perks.

AN points out the strategy shift is a financial blow to hundreds of Nissan dealers, who made a major investment in lifts capable of hoisting a fully loaded commercial vehicle for service.

 

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