SPAC IPO FILING: Apple Creek, Backed By Tricadia (AKU)

Apple Creek Acquisition Corp. is a special purpose acquisition company, or a SPAC, that has filed to come public.  For filing purposes it lists that it intends to sell up to 25.875 million units for a maximum proposed amount of $258.75 million.  The actual IPO filing is for 22.5 million units at a traditional price of $10 per unit, with each unit holding 1 share of common stock and 1 warrant with a $7.50 strike price.  The company will list units on the American Stock Exchange under the ticker "AKU" after it begins trading.  J.P.Morgan is listed as the lead underwriter and Ladenburg Thalmann is also in the underwriting.

This blank check company was formed November 28, 2007, and like all SPAC”s it has no operations currently.  While this says that it is not limited to any specific sector, the company said in the filing that it intends to focus on on acquiring an operating business in the alternative asset management sector or a similar business.  The company has a different filing than many as it has the right of first review with a company:

• We have entered into a business opportunity right of first review agreement with Tricadia Capital, which provides that from the effective date of the registration statement of which this prospectus forms a part until the earlier of the filing by us of a current report on Form 8-K with the SEC announcing the execution of a definitive agreement for our initial business combination, or our liquidation, we will have a right of first review with respect to business combination opportunities of Tricadia Capital with a fair market value of $177 million or more that Tricadia Capital, including its principals and employees, first becomes aware of after the effective date. Tricadia Capital will first offer any such business opportunity to us (subject to fiduciary obligations it has to its clients as a registered investment advisor) and will not, and will cause each fund and other investment vehicle managed or advised by Tricadia Capital not to, pursue such business opportunity unless and until our board of directors has determined for any reason that we will not pursue such opportunity.

Apple Creek’s management team will be made up of five senior managers of Tricadia Capital (the managing member of our founding stockholder) with an average, 20 years of experience in the fields of credit analysis and trading, leveraged loans, capital markets, risk management, structured products, and special situation investing.  The following Tricadia officers are managing this SPAC: 

• Chairman & Co-CEO, Michael Barnes;
• Co-CEO & Director, Arif Inayatullah;
• COO is Geoffrey Kauffman;
• Executive Vice President is John McCormick;
• CFO is Julia Wyatt.

Jon C. Ogg
February 6, 2008