GHL Acquisition Seals its Deal, Two More SPACs Await Votes this Week

Banking, finance, and taxes

Published: September 24, 2009 9:26 am

Last Updated: September 24, 2009 2:41 pm

SPACupdate.com monitors live deals involving blank check companies, associated stock and warrant transactions and relevant personnel moves.

GHL Acquisition Co. (AMEX: GHQ) completed its merger, bringing public satellite operator Iridium Holdings. The company’s shares were trading at $10.10 each at the close of trading Wednesday, prior to the announcement. The company announced that 16 million more shares, to be priced at $10 each, will be made available until Sept. 29, when the offer—and the merger—are both expected to be completed. The SPAC’s trading above redemption value so close to its vote date (many blank checks have seen share value tumble around the time of a deal vote) and its additional share offering are both positive signs for the company.

Today, Capitol Acquisition Co. (AMEX: CLA) is expected to have its deal vote to merge with a Pine River Capital Management-backed REIT, Two Harbors. More than 2.5 million shares of Capitol shares have been traded in the last week at values nearing, and in some instances, exceeding, the SPAC’s redemption value.

Friday, Hicks Acquisition Co. (AMEX: TOH) is expected to have its deal vote. Shares in the Hicks SPAC—assumed to be all but dead after a lengthy merger negotiation with Graham Packaging proved fruitless—have been trading heavily, with 4.5 million shares being sold on the open market yesterday alone. Hicks’ SPAC is said to be making buybacks and has engaged multiple energy investors for its attempt to bring public Resolute Natural Resources at a time when the SPAC’s founder, Thomas O. Hicks, is also said to be in discussions to sell his stake in the Texas Rangers baseball team.

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.”