TerraNova Capital Structured Finance, the credit advisory and special purpose finance division of TerraNova Capital Equities, launched its SPAC Backstop and deSPAC finance platform. The TerraNova finance platform will help special-purpose acquisition companies identify structured finance solutions in conjunction or in place of PIPE financing and redemption shortfalls.
“With over 200 SPACs seeking to execute completion of their target deSPAC and mergers, many SPACs are concerned about the ongoing constraints in the PIPE market as well as redemptions,” Todd Coffin, head of structured finance at TerraNova, said.
The platform is designed to create low friction solutions for SPAC sponsors and underwriters.
TerraNova assembled a consortium of several credit and structured finance investors who can provide a structured funding solution, either as a bridge, preferred equity or term loan funding, allowing a SPAC to expedite deSPAC closing. The TerraNova platform will allow a SPAC to address potential and unexpected issues in market liquidity, as well as reduce dilution to equity holders.
“In a market which isn’t ‘one size fits all, TerraNova has curated multiple investors for a variety of sectors and profiles, with a target range of funding solutions between $50 and $400 million in funding,” Coffin said.
