Yucaipa Acquisition is gearing up to come public as one of the newest special purpose acquisition companies (SPACs). In its S-1 filing with the U.S. Securities and Exchange Commission (SEC), the SPAC registered 30 million units at an expected offering price of $10 apiece, with an overallotment option for an additional 4.5 million units. At this price, the entire offering is valued up to $345 million.
Each unit consists of one Class A ordinary share and one-third of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share of the company at a price of $11.50 per share.
The lone underwriter for this offering is Citigroup, and the company intends to list its stock on the New York Stock Exchange under the symbol YAC and the warrants under the symbol YAC WS.
This is a newly organized blank check company incorporated as a Cayman Islands corporation and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. This is basically standard practice for most SPACs, but the Cayman Island incorporation is a twist.
The company will be led by Ronald Burkle serving as chair and chief executive. Ira Tochner will serve as the chief operating officer and chief financial officer. The management team will be supported by the broader Yucaipa Companies team.
Burkle currently serves as board chair of Soho House Holdings, a group of members-only clubs and restaurants with locations all over the world. He also owns or is a major investor in several companies in the entertainment industry, focusing on movie, television, music, sports and live events.
At the closing of the offering, the company will enter into a forward purchase agreement with its sponsor, Yucaipa Acquisition Manager, which will provide for the purchase of up to $50,000,000 of units by the sponsor.
The net proceeds from the offering will be deposited in a trust account to be used for the purchase, acquisition or combination.