SPAC IPO FILING: Grand Slam Acquisition Corp. (APP, VRY, TCW)

Grand Slam Acquisition Corp. is a SPAC (special purpose acquisition company) that has filed to come public via an IPO.  But this is larger than most SPAC IPO’s with a $750 million proceeds target.  Each unit will consist of a share of stock at the $10 set SPAC price and will consist of a warrant.  Citigroup is listed as the lead underwriter.

As you can see by its filing, it is not honing in on a set business for the time being:  "Our efforts in identifying a prospective target business will not be limited to a particular industry although we will not search for target businesses in the financial services industry or the entertainment, media and/or publishing industry…. We do not have any specific initial business combination under consideration. We have not, nor has anyone on our behalf, contacted or been contacted by any prospective target business or had any substantive discussions, formal or otherwise, with respect to such a transaction."

While the target sector may not be disclosed, the SPAC says it wants to pursue stable leadership companies.  Here are the notes:

• Established Companies with Proven Track Records;
• Companies with Strong Free Cash Flow Characteristics;
• Strong Competitive Industry Position;
• Experienced Management Team.

The company is led by the old Endeavor Acquisition Corp. chairman Eric Watson, which just recently became American Apparel (AMEX:APP). He’s been around this game before as he has been behind other SPAC’s such as Victory Acquisition Corp. (AMEX: VRY) with a $390 million market cap today, Triplecrown Acquisition Corp. (AMEX: TCW), and Performance Acquisition Corp.

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Jon C. Ogg
December 27, 2007