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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

By Svea Herbst-Bayliss

BOSTON, Oct 9 (Reuters)Billionaire investor Daniel Och, who founded hedge fund Och-Ziff Capital Management, said in a filing on Friday that he plans to raise $750 million through a blank check acquisition vehicle, becoming the latest major hedge fund investor to launch one.

Och, who started Och-Ziff in 1994, retired as its chief executive in 2018 and left the firm, which is now called Sculptor Capital Management SCU.N, last year.

Ajax I, will be managed by Och and investor Glenn Fuhrman, who co-founded MSD Capital, which manages Michael Dell’s fortune, in 1998. Instagram co-founder Kevin Systrom, Square co-founder Jim McKelvey, 23andme co-founder Anne Wojcicki and Chipotle founder Steve Ells will serve on the board.

Ajax sponsors have reduced the promote to 10% instead of the usual 20%, according to the regulatory filing.

Ajax said it will seek a company that operates in the internet, software, financial technology or consumer industries.

Och, through his family office Willoughby Capital Holdings, has a long track record of investing in technology companies including Coinbase, Instacart, Stripe and Robinhood.

He now joins the ranks of hedge fund managers William Ackman’s Pershing Square, Jeffrey Smith’s Starboard Value LP and Daniel Loeb’s Third Point LLC who have all raised pools of capital known as special purpose acquisition companies (SPACS).

A SPAC is a shell company that raises money through an initial public offering to buy an operating entity, typically within two years.

In total, 112 SPACS have raised $42.9 billion through an IPO in the first nine months of 2020, making it the biggest year on record, according to SPAC Research data.

A merger with a SPAC allows a private company to access capital quickly and quietly, which is especially beneficial during the volatile trading conditions that have been influenced

Kenn Ricci, the principal of Directional Aviation says, he is looking to make some deals in excess of $100 million. His focus is electric aviation, sustainable aviation, and other emerging technologies.

Directional’s OneSky Flight unit houses Flexjet, the number two seller of fractional private jet shares, Sentient Jet, the company that invented jet cards, and PrivateFly, an on-demand charter broker focused on Europe and international markets. All three came via acquisitions over the past decade. More recently, OneSky launched a premium on-demand brokerage, FXAIR.

Ricci has created a special purpose acquisition company as his vehicle and is targeting larger acquisitions than in the past, according to an interview with Corporate Jet Investor. A spokesperson confirmed the contents of the report.

“We typically have around $30 million to invest in equity in each new company. With leverage we can make that up to around $100 million or $150 million…There are private equity companies interested in several billion-dollar companies, but there is a gap between what we do and what the large funds are doing. That is why we have filed for a SPAC,” he told the U.K.-based aviation journal.

Directional’s holdings also include Nextant Aerospace, which remanufactures private aircraft, Constant Aviation, a MRO, Sojourn Aviation, an aircraft sales and brokerage company, and Simcom, which provides pilot training, among others.

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The website of the Security and Exchange Commission shows a filing registering Zanite Acquisition Corporation was made on Sept. 4, 2020.

It’s the third SPAC related to private aviation filed in the last 45 days. In August, Surf Air said it intended to go

Lloyd Blankfein wearing a suit and tie: Brendan McDermid/Reuters

© Brendan McDermid/Reuters
Brendan McDermid/Reuters

  • Goldman Sachs’ former CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money is clearly creating bubble elements in the markets.” 
  • The banking titan blamed low interest rates for creating free money for large investors. 
  • Blankfein also cited speculation in the growing SPAC market: “Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan.”

Former Goldman Sachs CEO Lloyd Blankfein told CNBC on Thursday that a “wash of free money” due to low interest rates is “clearly creating bubble elements in the markets.”


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“Given that money is kind of free, it presumably is not being allocated in a disciplined way, and so there are bubble elements to this,” Blankfein said. “Look at the credit market — people are lending to what historically would have been weak credits for very little money.”

The banking titan also referred to the SPAC market as a sign that the market is taking on much speculation lately. In this year alone, about 110 blank-check firms led by notable investors like Chamath Palihapitiya and Bill Ackman have raised over $40 billion on public markets. That’s over $26 billion more than what last year’s SPACs raised.

Read more: Citi’s US equities chief warns of an ‘extreme peak’ in earnings revisions heading into the crucial reporting season — and explains why it makes stocks vulnerable to a pullback in the weeks ahead

“Look at SPACs and how much money  is available on the basis of somebody’s reputation as opposed to a business plan,” Blankfein said. 

The banking titan can be added to the growing list of investors voicing concerns about the speculative nature in markets. Last week, venture capitalist Bill Gurley said the stock market reminded

CF Finance Acquisition III, a third blank check company formed by Cantor Fitzgerald, filed on Wednesday with the SEC to raise up to $200 million in an initial public offering.

The New York, NY-based company plans to raise $200 million by offering 20 million units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable $11.50. The sponsor has agreed to purchase $5 million of units in a concurrent private placement. At the proposed price, CF Finance Acquisition III would command a market value of $255 million. 

The company is led by CEO and Chairman Howard Lutnick, the CEO and Chairman of Cantor President Anshu Jain, the President of Cantor; and CFO Paul Pion, the US Chief Administrative Officer and Senior Managing Director of Cantor Fitzgerald & Co. While the company has not selected a target industry or geography, it plans to leverage its management team’s experience in the financial services, healthcare, real estate services, technology, and software industries.

Cantor Fitzgerald’s previous SPACs include CF Finance Acquisition (CFFA; +3% from $10 offer price), which went public in December 2018 and is pending an acquisition of GCM Grosvenor, and CF Finance Acquisition II (CFIIU; -0.5%), which went public in August 2020. 

CF Finance Acquisition III was founded in 2016 and plans to list on the Nasdaq under the symbol CFACU. The SPAC filed confidentially on July 20, 2020. Cantor Fitzgerald is the sole bookrunner on the deal.

The article Cantor Fitzgerald’s SPAC CF Finance III files for a $200 million IPO originally appeared on IPO investment manager Renaissance Capital’s web site

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital’s research analysts and do not constitute an offer to buy or sell any security. Renaissance