TerraNova Capital Announces launch of SPAC Backstop and deSPAC finance platform

Investment Banking
John Burns


NEW YORKJuly 28, 2021  — TerraNova Capital Structured Finance (“TerraNova Capital”), the credit advisory and special purpose finance division of TerraNova Capital Equities, Inc. today announced the launch of their SPAC Backstop and deSPAC finance platform.  The TerraNova finance platform will help SPACs 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,” stated Todd Coffin, Head of Structured Finance.

TerraNova has assembled a consortium of several key credit and structured finance investors which can provide a one stop structured funding solution, either as a bridge, Preferred Equity, or term loan funding, allowing a SPAC to expedite the deSPAC closing.  The TerraNova Capital platform allows a SPAC to address potential and unexpected issues in market liquidity, as well as reduce dilution to the equity holders.

The platform is designed to create low friction solutions for SPAC Sponsors, as well as underwriters. “In a market which isn’t “one size fits all”, Mr. Coffin states, “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”.

About TerraNova Structured Finance:

TerraNova Structured Finance is the structured finance advisory group of TerraNova Capital, a 20-year-old financial advisory firm focused on the small-to-middle market.  TerraNova Capital is comprised of two divisions; TerraNova Capital Equities, Inc. (Member FINRA/SIPC), the investment bank, provides financial and capital solutions to its clients, while TerraNova Capital Partners, Inc. focuses on merger and acquisition (M&A) advice and merchant banking.