Lyft to Pay $10M for Concealing Director’s Role in Pre-IPO Stock Sale

Lyft $10 million fine

Ridesharing company Lyft Inc. has agreed to pay a $10 million civil penalty to resolve Securities and Exchange Commission (SEC) allegations that it failed to report a board director’s involvement in a $424 million private share sale before the company’s initial public offering (IPO).

Ryan Specialty Group Climbs in Debut After $1.34 Billion IPO

Ryan Specialty

Ryan Specialty Group Holdings Inc., the insurance company led by Aon Corp. founder Patrick G. Ryan, rose 17% in its trading debut after raising $1.34 billion in an initial public offering. Shares of Chicago-based Ryan Specialty Group closed Thursday at $27.50, giving it a market value of about $7 billion. The company sold almost 57… Continue reading Ryan Specialty Group Climbs in Debut After $1.34 Billion IPO

Kin Insurance to Go Public Via Matt Higgins SPAC Deal

New SEC rules for SPACs

Kin Insurance Inc., an insurance-technology startup that counts golfer Rory McIlroy among its investors, has agreed to go public through a merger with Omnichannel Acquisition Corp., a blank-check firm led by Matt Higgins, a longtime investor who has appeared as a “Shark Tank” judge. “We were searching for a digitally fueled business that was going… Continue reading Kin Insurance to Go Public Via Matt Higgins SPAC Deal

Wall Street Grapples with New SPAC Equity Contracts after SEC’s Crackdown

New SEC rules for SPACs

Wall Street accountants and lawyers are trying to figure out new equity agreements to lure investors back to the blank-check company market after the U.S. regulator cracked down on the use of warrants, six industry executives told Reuters. They are discussing jettisoning warrants issued by special-purpose acquisition companies, or SPACs, in favor of rights agreements,… Continue reading Wall Street Grapples with New SPAC Equity Contracts after SEC’s Crackdown

Tick-Tock: SPACs Increasingly Under Pressure to Find Quality Mergers

New SEC rules for SPACs

Blank-check companies, aka special-purpose acquisition companies (SPACs), already have stiff competition in finding firms with which to merge. Now, with recent share-price declines and a ticking clock to take companies public, the pressure to do so is ramping up even more. The new challenges for creators of SPACs result in part from the abundance of… Continue reading Tick-Tock: SPACs Increasingly Under Pressure to Find Quality Mergers

‘Shark Tank’ Judge’s SPAC in Talks to Merge with Insurer

World Business teamwork puzzle pieces 3d rendering

Home-coverage startup Kin Insurance is in talks to go public via Omnichannel Acquisition Corp., a special purpose acquisition company led by recurring “Shark Tank” guest judge Matt Higgins, according to people with knowledge of the matter. The combined entity is set to be valued at over $1 billion, one of the people said. Terms could… Continue reading ‘Shark Tank’ Judge’s SPAC in Talks to Merge with Insurer

SPAC Surge Pumps Up Junk-Bond Market

New SEC rules for SPACs

The wave of cash raised by special-purpose acquisition companies is rolling into the junk debt market, aiding distressed companies and rewarding investors who own their bonds and loans. SPACs, also known as blank-check companies, have issued roughly $100 billion of stock this year, a record, to buy private companies and take them public. Some SPACs… Continue reading SPAC Surge Pumps Up Junk-Bond Market

SPAC Hot Streak Put on Ice by Regulatory Warnings

New SEC rules for SPACs

Investors are cooling to one of the hottest bets on Wall Street as new regulatory scrutiny of special-purpose acquisition companies cuts the flood of new issues to a trickle while share prices tumble. SPACs have raised about $100 billion so far this year, more than last year’s record of $83.4 billion, which itself was more… Continue reading SPAC Hot Streak Put on Ice by Regulatory Warnings