HICKS ACQUISITION (NYSE: REN): The SPAC’s deal with Graham Packaging on life support, dealmaker Thomas O. Hicks rejuvenated his $550 million SPAC with a new target, Resolute Energy Corp. Investors including SPO Advisory piled on and the merger pulled through, taking warrants that were worth $0.08 just weeks away from the SPAC’s deadline and inflating their value to $2.17 on Dec. 18. Since the IPO, units are up more than 30 percent.

TM ENTERTAINMENT (AMEX: CCME): The Ted Green-led SPAC went from, in March, being sued by Bulldog Investors to liquidate early, to finding a winning target in China MediaExpress. The $82 million SPAC went on a successful warrant buyback campaign after the deal was completed, buying nearly 2 million warrants at $0.50 a pop. The company’s revenues grew 65% last quarter and net income was up 43 percent. The SPAC’s units have more than doubled in value from their worth at the time of the IPO, making this deal one of the best SPACs of the recession.

SPRING CREEK ACQUISITION (NASDAQ: AUTC): The Mighty Mouse of this year’s SPACs at $41 million, Spring Creek brought AutoChina International public in April 2009 and almost immediately began working to sell the company’s dealership business to focus on auto financing. The result was an explosion of value that investors have been riding for eight months. Target managers who decided to buy warrants prior to the deal’s vote saved a mint in cash and dilution. Warrants went from trading for pennies to hitting an eye-popping $20 each as they became eligible for redemption and the SPAC’s units are up a mind-boggling 400%-plus. Yes: four hundred percent.

Losers:

GLOBAL CONSUMER ACQUISITION (WLBC): First, the SPAC sought to bring public some assets of Colonial Bank, but that target failed and was bought by an owner who then refused to sell to the SPAC. Not being short on banks desperate for a capital injection, management arranged a new merger to bring Service1st Bank of Nevada and 1st Commerce Bank public. It worked—until it didn’t. Days after the deal’s completion in October, AMEX officials notified the merged entity, now called Western Liberty Bancorp, it would be de-listed for not maintaining enough shareholders. 1st Commerce then dissolved its merger agreement, leaving Global Consumer and Service1st looking for a new exchange to trade on (it is trying to get onto NASDAQ) as well as a new target. The SPAC’s units are trading 15% below their IPO value now—but the blank check’s management at least succeeded in getting a deal done.

ASIA SPECIAL SITUATION (AMEX: CIO): In March 2009, Asia Special Situation announced a deal to buy White Energy, an Australia-based energy supplier for Korea. Months dragged on until July, when the SPAC amended its agreement to offer the target more cash. As the vote date drew closer, the target got cold feet and in November instead opted to accept a $100 million capital injection from an outside investor. The SPAC—which might have had success had it sped its deal vote’s arrival—will liquidate, more than nine months after its merger was first revealed.

PINPOINT ACQUISITION (PPAC): In May, Pinpoint Acquisition announced a deal had not materialized sufficiently and that it would liquidate, retaining only a few thousand dollars and remaining a shell company in search of SPAC-capital. After holding onto shareholders’ redemption checks for up to seven months following the liquidation announcement, the SPAC found a new way to raise funds. It sued former target Elbit Systems for bad faith for a deal that had fallen apart months earlier. That suit has yet to proceed.

Other SPACs getting high marks for 2009 include GHL Acquisition Co. (NASDAQ: IRDMU), 2020 ChinaCap (NASDAQ: EDS) and China Opportunity (GGEEF). More blank checks that ran into difficulty after the merger include Triplecrown (OTC: CAGZ), InterAmerican (IAQG), and Alyst (OTC: CNWHF). 2010’s SPAC deals already have investors buzzing; the BPW-Talbots (AMEX: BPW) deal pushed the SPAC’s shares past redemption value almost immediately. Chardan 2008 China (AMEX: CACA) reversed course; that SPAC has sized up a Florida-based company that processes property bankruptcies for a deal. That blank check, too, is currently seeing its shares trade above trust. New SPAC GSME Acquisition Co. (OTC: GSMEF) priced late this year, marking the first post-recession blank check to emerge and 57th St. Acquisition Co. continues to raise capital. Smaller and boutique banks keep working to connect SPAC sponsors with management teams and in Toronto, the TSX awaits its first blank check.

For more on these and other SPACs, please visit www.SPACupdate.com.

Lately, Victory Park has helped several SPACs make it across the finish line, including Hicks Acquisition Co. (AMEX: TOH), Enterprise Acquisition Co. (AMEX: EST) and Triplecrown Acquisition Co. (AMEX: TCW). Earlier this week, Guardian Life Insurance Co., a lender to Kennedy-Wilson, bought into the blank check and was allowed to appoint one of its board members.

China Fundamental Acquisition Co. (OTC: CFQCF) has a deal. The SPAC has not revealed its merger target, so there’s not much more to report than that. The blank check’s warrants, at around $0.95, were trading higher than any other SPAC that had not declared a merger, prior to its announcement. China Fundamental told its shareholders it could look to extend its deal deadline by up to a year, to May 2011.

Global Brands Acquisition Co. (AMEX: GQN) has less than a month to complete a merger, but there is no time to get started like the present. As several SPACs have already done this fall, Global Brands will look to take Gerrity International, a West Coast REIT, public.

North Shore Acquisition Co. (OTC: NSAQ), which was working to get its merger with a Korean offshore drilling company completed by early December, announced that it is now attempting to push its deal deadline back to March 2010.

Asia Special Situation Acquisition Co. (AMEX: CIO) saw its deal with White Energy collapse when its target took a $100 million investment from another bidder. The SPAC now has until Jan. 10, 2010 to identify a new target and get a merger completed.

For more on these mergers and other deal votes, please visit www.SPACupdate.com.

On Oct. 15, TM Entertainment & Media (NYSE: TMI) will have its deal vote to buy China MediaExpress, an advertising company. The SPAC’s shareholder base is primarily occupied by yield-to-trust investors, which may hobble its efforts to take its target public. Already, one of TM Entertainment’s shareholders, Bulldog Investors, sought to have the company liquidate early instead of pursue a merger.
 
Capitol Acquisition Co. (AMEX: CLA), the SPAC that aims to bring public Two Harbors Investment Corp., will have its deal vote Oct. 26. Ideation Acquisition Co. (AMEX: IDI) delayed its deal vote one day, to Oct. 27.
 
No SPACs have deal votes set for this week.
 
Bulldog Investors reported in a federal filing that it sold part of its stake in InterAmerican Acquisition Group (OTC:IAQGU), the SPAC that brought public development company China New Cities. The investor previously held about nine percent.
 
Wesley Capital Management revealed it has a stake of nearly nine percent in NRDC Acquisition Co. (AMEX: NAQ).
 
Millennium Management sold out of its stake in Hicks Acquisition Co. (AMEX: TOH) before the blank check got its deal approved. On Friday, Hicks’ deal to buy Resolute Natural Resources was approved by shareholders, marking a surprising turnaround for the blank check that just a couple of months ago had a stalled deal to buy Graham Packaging.

 For more on these SPACs and other blank checks, visit www.SPACupdate.com.

Correction: “You are reporting that shareholders of Capitol Acquisition Corp., which is merging with the new Pine River Capital-backed REIT Two Harbors, are voting on the deal today. Today is actually just the shareholder record date and the vote has not yet been.”

GHL Acquisition Co. (AMEX: GHQ) will have its vote Wednesday, Sept. 23, to bring Iridium Holdings, a satellite company, public. Although the SPAC has until 2010 to complete its merger vote, multiple sources have indicated that, after a lengthy wait for federal approval, the blank check has secured enough votes to complete the deal. GHL’s warrants, now trading at around $3.30, support this.

Hicks Acquisition Co. (AMEX: TOH) will have its vote  Thursday, Sept. 24; the SPAC recently moved its merger vote back by one day. As its vote to bring Resolute Natural Resources public nears, the blank check has increasingly sought out investors to support its deal. Ever since Hicks Acquisition dumped target Graham Packaging, investors SPO Advisory (22.5%) and Advisory Research Fund (5.56%) have taken stakes in the SPAC sources say will be voted in favor of its deal. The blank check has until Sept. 28 to complete its deal. Hicks may be closing in on getting sufficient shareholder support; more than 13 million shares of the SPAC have traded at or around its trust value since Sept. 15. Warrants are trading at around $0.56.

Capitol Acquisition Co. (AMEX: CLA), a $323 million SPAC, will have its vote Thursday, Sept. 24, to bring REIT Two Harbors Investment Corp. public. Monday, the SPAC’s shares briefly traded above trust value, signifying that Two Harbors owner Pine River Capital Management may still be buying shares. Nearly three million shares of the SPAC have been sold since Sept. 15.

Ultimate Escapes Holdings, the resort company to be acquired by Secure America Acquisition Co (AMEX: HLD) added to its portfolio 49 new club properties from smaller competitor Private Escapes appraised at around $50 million. Secure America still needs to execute buybacks to complete its deal deadline of late October, sources said. With a redemption value of $7.94 per share, the SPAC’s shares are trading at $7.88 and warrants are selling for $0.15.

Two SPACs announced deal vote dates last week: Global Consumer Acquisition Co. (AMEX: GHC) will have its shareholders meet to vote on its bank capital injection deal on Oct. 7; SP Acquisition Co. (AMEX: DSP) will meet with shareholders on Oct. 8 to bring Frontier Financial public.

To read more about any of these deals, please visit www.SPACupdate.com.

GHL Acquisition Co. (AMEX: GHQ) has plans to issue more shares of its stock to execute warrant buybacks, the SPAC revealed. Last week, the SPAC announced buybacks of more than 10 million shares to complete its merger with Iridium Holdings. Sources familiar with the situation say the SPAC will ultimately get its deal completed.

InterAmerican Acquisition Co. (OTC: IAQGU) has its vote date set for Sept. 8, after multiple delays. The blank check could still push the vote date back as far as Sept. 10, but no further, as Thursday is its deal deadline. Despite buybacks of $24 million, sources say the blank check still had more work as of Friday to complete its merger.

Hicks Acquisition Co. (AMEX: TOH) has a potential ally as it looks to bring public Resolute Natural Resources. SPO Advisory, a California-based energy investor, has amassed a stake in the SPAC amounting to more than 22 percent. The blank check’s warrants have traded up substantially since Hicks Acquisition backed out of its deal with Graham Packaging and signed its merger agreement with Resolute. The SPAC’s deal vote date is Sept. 22…

2020 ChinaCap Acquisition Co. (AMEX: TTY) has a new investor; Keywise Greater China Opportunities Fund revealed a stake buy of 6% and Israel Englander’s Integrated Core Strategies also reported holdings in the SPAC’s warrants that amounted to nearly 3 million warrants. Integrated has minimal holdings in the SPAC’s stock, as well.

North Shore Acquisition Co. (OTC: NSAQ), the SPAC that recently saw Tremisis Energy Acquisition Co. II CEO Sang Chul-Kim take its helm, also has a new investor: Tiger Europe Master Fund Ltd. filed at 13G with the SEC revealing it has a 5.5% stake.

-The SPACUpdate Staff
SPACUpdate.COM

SEPTEMBER 8, 2009

Hicks Acquisition is a Dallas-based special purpose acquisition company, or SPAC, that was founded and headed by Thomas O. Hicks.  This is also going to be one of the larger SPAC transactions that has ever been announced.  With the debt and financing from partners, this SPAC merger will be valued at approximately $3.2 Billion.  This may even be a record for a SPAC, or at least for the sector it is entering.

After the transaction, the combined enterprise will be renamed Graham Packaging Company and will list on the New York Stock Exchange.

Blackstone has also agreed that it will maintain the largest ownership stake for at least two years as it continues to play an important role in guiding the company strategically and operationally.

Graham Packaging was founded in 1972 and is based in York, PA.  Its 2007 sales are represented as roughly $2.5 Billion.  Graham Packaging is a market leader in custom plastic containers, producing more than 20 billion container units annually at 83 manufacturing plants in North America, Europe and South America. It calls itself the leading supplier of plastic containers for hot-fill juice and juice drinks, sports drinks, drinkable yogurt and smoothies, nutritional supplements, wide-mouth food, condiments, beer, liquid laundry detergent and motor oil.  Certain key customer names are Pepsi, Coca-Cola, Danone, Ocean Spray, Heinz, Abbott, Nestle, Anheuser-Busch,and many more.

Hicks Acquisition I has been public since its IPO in October 2007.

Jon C. Ogg
June 30, 2008