EX-TRUMP ADVISER SEEKS $600-M FOR BLANK CHECK IPO
Gary Cohn, the former economic adviser to US President Donald Trump, has teamed up with investor Clifton S. Robbins to seek $600 million in an initial public offering (IPO) for a new blank-check acquisition company, filings showed on Tuesday, Joshua Franklin reported for Reuters on August 26, 2020.
Cohn is the latest high-profile name to join the frenzy of Wall Street deal-making related to special purpose acquisition companies (SPACs.)
SPACs were considered a banking backwater a decade ago but have emerged in 2020 as one of the most active areas on Wall Street, driven by splashy deals for the likes of space tourism company Virgin Galactic Holdings Inc. and fantasy sports and gambling company DraftKings Inc. High-profile financiers such as Bill Ackman, Michael Klein and Chamath Palihapitiya as well as former US House Speaker Paul Ryan are among the sponsors for SPAC IPOs in 2020.
A SPAC is a shell company that raises money through an IPO to buy an unspecified operating company to then take public, usually within two years. Cohn’s SPAC, Cohn Robbins Holdings Corp, will look to sell 60 million units in an IPO at $10 apiece, and list on the New York Stock Exchange under the symbol “CRHC.U.” The SPAC had previously been on file with the US Securities and Exchange Commission (SEC) under the name CSR Acquisition Corp and had planned to raise $300 million.