K Road Acquisition Corporation, a SPAC, or special purpose acquisition company, submitted an IPO filing last Friday. The filing shows $300 million proceeds targeted at $10.00 per unit, each unit will consist of one share of stock and one warrant. The total proposed maximum aggregate amount in securities is listed as $345,000,000 in securities, although this number is merely for filing purposes. The lead underwriter is listed as Credit Suisse. It has requested to be listed on American Stock Exchange.
The filing specifies that they will focus on the North American energy industry, particularly on power sector businesses or assets. In identifying a target, the management will evaluate based upon the following criteria: History of profitability and free cash flow; strong management team; opportunities for add-on acquisitions; spin-off or divestitures from larger companies; defensible business niche; and a diversified customer and supplier base.
The company expects to capitalize on the significant experience and expertise of its management in the energy sector. The chairman, president, and CEO of K Road Acquisition Corp is William Kriegel. He was the former founder, chairman, president and CEO of Sithe Energies, Inc., now one of the world’s largest independent power companies. With David Tohir and Barry Sullivan, Mr. Kriegel established K Road Power and K Road Ventures. Both companies invest in energy focused technologies and assets.
Rachel Lopez
February 4, 2008
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