Data Engineer. Python & SQL. Small/Micro Cap Special Situations. SPAC Secondary Markets. Capital Management. Not investment advice.
Joined February 2024
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SPAC trust thought:
Fed Funds midpoint: 3.875%
BlackRock TTTXX: 3.74% (9/30)
A non-interest-bearing bank account could theoretically generate more in bank credits than a Treasury money market fund earns in interest, assuming credits are calculated at Fed Funds.
Interestingly, State Street Global Advisors Trust Company disclosed in January 2026 that earnings credits on $SPY trust cash are calculated using the Federal Funds Rate.
Now imagine converting those credits into cash and adding them to redemption NAV. 😂
Except bank credits generally aren't redeemable for cash, and the trustee may be the beneficiary anyway.
As some SPAC trust agreements put it:
“while the account funds are invested or uninvested, the trustee may earn bank credits or other considerations”
cdn.yahoofinance.com/prod/se…
Walleye Capital’s latest 13F shows pre-merger SPAC holdings in $BIXI, $KRSP, $CEPV, $PMTR, $AEXA, and $CEPF. Worth keeping an eye on these names if the firm decides to liquidate or reduce its SPAC exposure.
DataTrack retweeted
Medicus Pharma plans $135M SPAC spinoff for SkinJect at 56x market cap 🤝
#MDCX #MergersAndAcquisitions
Excellent video from 'The SPAC Conference 2026' on SPAC cash management. Worth a watch for any SPAC arb.
youtube.com/watch?v=ChonrydL…
$ALDF invests its trust assets directly in short-term T-bills rather than money market funds holding T-bills.
BlackRock's Treasury Trust Fund (TTTXX) has a 7-day SEC yield of 3.85%, versus 4.07% for 8-week T-bills.
"At September 30, 2026, substantially all of the assets held in the Trust Account were invested in a short-term U.S. Treasury obligations which are held to maturity."
sec.gov/ix?doc=/Archives/edg…
$NSAI "NorthStrive Acquisition Corp I Announces Business Combination with Nuclea Energy"
stocktitan.net/news/NSAI/
Getty Images completed its SPAC merger in 2022, then refused to honor warrant exercises, citing unmet registration conditions. By the time exercises were permitted, shares had fallen below the $11.50 strike.
Warrant holders sued and won. Now Getty is pursuing Chapter 11 and seeking to wipe out remaining warrant litigation claims.
If successful, this could set a troubling precedent for SPAC warrant holders. Worth watching.
$TONT Graf Global filed S-4 today. BIG3 increased its valuation by $95 million at the last minute. On June 10, BIG3 informed Graf that it would not proceed below $290 million. This was just one day before board approval. No independent valuation or financial projections were reviewed.
sec.gov/ix?doc=/Archives/edg…
Interesting provision in Heroic Empire Acquisition Limited’s recently filed S-1: The SPAC can settle its $10,000 monthly administrative fees by issuing ordinary shares at $10 per share upon completion of its business combination, rather than paying cash.
sec.gov/Archives/edgar/data/…
The new S-1 filed today by Heroic Empire Acquisition Limited does not include the customary $100,000 dissolution expense provision. This could mean the SPAC would not deduct $100,000 from its trust account in the event of liquidation.
sec.gov/Archives/edgar/data/…
SPAC's switching from Nasdaq to NYSE during S-4 process for target shows a general disdain for SPAC's wanting to IPO on Nasdaq these days.
Institutional SPAC IPO investors may be pushing back against excessive sponsor promotes. The four SPAC offerings this month that were reduced all include promotes above the standard 20%.
DataTrack retweeted
The #SPAC market is showing renewed momentum, but the economics of getting a deal across the finish line have changed considerably.
With more SPACs searching for targets and more companies considering the public markets, the opportunity is definitely there. But the challenge is making sure the financing holds up when shareholders have the option to redeem.
A signed #merger agreement doesnt guarantee the cash needed to close.
In my latest article with Eric Chow and Alexandre Camargo Turqueto for Foley & Lardner LLP, we look at the financing structures, redemption risks, and sponsor incentives shaping this next chapter of the SPAC market.
Check out our insights on Ignite here – foley.com/insights/publicati…
A whole warrant plus a 1/2 share right is a generous SPAC unit package, and they still reduced the offering by 33%.
SPACCircle Acquisition lowers deal size by 33% ahead of $100 million IPO $SCQCU $IPO #IPO zpr.io/BjkBneUmaes5
"Hyperscale Data Targets 2027 Public Listing for askROI AI Unit. The company is weighing an IPO, reverse takeover or SPAC transaction."
tokenpost.com/news/business/…
Spring Valley Acquisition V charging $75,000/month for office space, utilities, and secretarial and administrative support is the most egregious administrative fee I've ever seen in a SPAC filing.
That's $900,000 annually paid to the sponsor. For context, $10,000/month has historically been common.
sec.gov/Archives/edgar/data/…