No bonds for Hammerin' Hank...

SPAC IPO FILING: Sports Properties Acquisition Corp. (HMR, TAXI)

Sports Properties Acquisition Corp. filed to sell 20 million units at the traditional $10.00 per unit, and the company is granting an overallotment allowance of 3 million more shares. Sports Properties is taking the proposed ticker "HMR" on the American Stock Exchange and so far lists only Banc of America Securities as the lead underwriter.

The company is a SPAC, a special purpose acquisition company, so it has no existing operations.

This was formed to acquire, through a merger, capital stock exchange, asset or stock acquisition, exchangeable share transaction, joint venture or other similar business combination, one or more domestic or international operating businesses. It intends to focus efforts on companies that create, produce, deliver, distribute, market content, products and services pertaining to the sports, leisure or entertainment industries.

Here is SPAC's managment all-stars:

• Tony Tavares, President and Chief Executive Officer, is the former CEO and President of SMG, a premier management company engaged in the private management of stadiums, arenas, theaters and convention facilities.
• Jack Kemp, Chairman, was the Republican Vice Presidential candidate in 1996, and is a former AFL quarterback.
• Andrew Murstein, Vice Chairman and Secretary, has served as the President and a director of Medallion Financial Corp. (NASDAQ:TAXI), a publicly traded investment company, since its IPO in 1996.
• Richard Mack, Director, is a senior partner at Apollo Real Estate Advisors.
• Henry "Hank" Aaron, Director, the unjuiced homerun king of major League baseball.
• Mario Cuomo, Director, is a former three-term Governor of the State of New York.
• Randel Vataha, Advisor, is a former Stanford football player and NFL wide receiver.
• Robert Caporale, Advisor, is a former sports and entertainment law attorney who has represented a number of professional sports leagues and franchises.

A unit consists of 1 common share and 1 warrant with a $7.50 strike price per unit. Maybe investors will get to own another public sports team since these have essentially all gone private. Prior public sports teams were the Cleveland Indians and Boston Celtics, and the Green Bay Packers are one of the community owned and quasi-public companies (that you can't buy a share in easily).

View the original article.

Ladenburg's SPAC Alert

SPAC Product Overview

Special Purpose Acquisition Companies, commonly referred to as "SPACs," are newly formed companies that raise equity capital through an initial public offering for the sole purpose of pursuing a business combination in a dedicated industry or geographic location. SPAC offerings are typically sponsored by experienced corporate executives, managers of private equity firms and seasoned entrepreneurs.

The offering is in the form of a unit, comprised of a common share and warrant(s). The offering proceeds are held in escrow in an interest bearing trust account. Immediately following the offering, the SPAC typically has 18 months to announce an acquisition and then an additional six months to receive shareholder approval of the proposed business combination. The sponsors typically receive founder shares or units for 20% of the company, which have value only if an acquisition is completed.

If an acquisition is not completed within the allotted 18 to 24 months, the cash held in escrow is liquidated and shareholders are returned their prorated cash amount. This typically would lead to an investor having 90-100% of their initial investment returned. Currently, SPACs trade on the over-the-counter bulletin board, the American Stock Exchange, and the Alternative Investment Market (AIM), a subsidiary of the London Stock Exchange.

sign up for Ladenburg-Thalman's alerts.