Key SPAC Deals on Deck (HLD, EST, NAQ, CLA)

SPACupdate.com has been bringing 24/7 Wall Street waves of data on the resurgence of special purpose acquisition companies, or SPACs.   After a string of successful mergers, two coming to vote by the end of this week will try to build on the prior successes of real estate SPACs.  Secure America Acquisition Co. (AMEX: HLD) is set to vote and Enterprise Acquisition Co. (AMEX: EST) hopes to follow a similar path of NRDC Acquisition Co. (AMEX: NAQ) and Capitol Acquisition Co. (AMEX: CLA).

Secure America Acquisition Co. (AMEX: HLD) is set to bring its deal vote to shareholders to bring public luxury vacation lodging operator Ultimate Escapes on Oct. 28. The SPAC’s target has been out buying up additional vacation properties since its deal was announced. Lately, the $80 million SPAC has dramatically improved its odds to complete its merger. Secure America completed buybacks of 4 million of its shares independently and enlisted the help of Victory Park Capital Advisors to buy up another $15 million worth of its shares. The SPACs’ warrants are trading around $0.35—although, the deal’s completion will have their value skyrocketing—and shares are trading at $0.01 off their redemption value.

Enterprise Acquisition Co. (AMEX: EST) will bring to shareholders another SPAC-REIT deal, in hopes that increasingly risk-hungry investors will sign off on its merger similar to how NRDC Acquisition Co. (AMEX: NAQ) and Capitol Acquisition Co. (AMEX: CLA) have. SPACs making plays in the distressed real estate space have found unparalleled support among shareholders who have been only too eager to send share prices shooting past redemption value prior to deal votes. Enterprise, however, is seeing shares trade well off their redemption value (by about $0.74 after Tuesday’s session). It is worth noting that, even as market prognosticators warm up to blank checks again, still other recent SPACs have seen share value take a fall in the event of a successful deal vote, and during a week where markets have seen overall value fall, this might end up being an insider’s harbinger of a completed transaction. Enterprise warrants are trading for around $0.30.

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