TerraNova Capital Equities Announces Updates to their SPAC Backstop and deSPAC Finance Platform

Investment Banking
John Burns


NEW YORKFeb. 2, 2022 — TerraNova Structured Finance, the credit advisory and special purpose finance division of TerraNova Capital Equities, Inc. today is highlighting the continued growth of their SPAC Backstop and deSPAC finance platform. The TerraNova Structured Finance platform will help SPACs identify structured finance solutions in conjunction or in place of PIPE financing.

“As over 500 SPACs are seeking to complete target deSPAC’s and mergers, many are concerned about the ongoing constraint in the PIPE Market”, stated Todd Coffin, Head of TerraNova Structured Finance.

TerraNova Structured Finance has sourced a wide variety of investors, to provide both structured finance and equity solutions allowing a SPAC to expedite closing. TerraNova Structured Finance has assembled key credit and structured finance investors which a one stop structured funding source, providing Bridge loans Preferred, Convertible, or Term Financing, which allows a SPAC to expedite a closing. TerraCap Structured Finance also has available equity solutions such as Forward Purchase Agreements and other structured equity solutions which provide Companies and SPACs added liquidity and enables them to more quickly deSPAC. The TerraNova Structured Finance platform allows a SPAC to address potential and unexpected issues in market liquidity, as well as offers reduced dilution to the equity holders through a term loan or an equity conversion at a premium.

With redemptions averaging 61% as of December 2021 and over 400 SPAC’s set to expire between Q1 2022 and Q1 2023, TerraNova Structured Finance believes its deSPAC platform provides a needed solution which enables sponsor and underwriters to execute a successful deSPAC with limited cost and friction to all parties.

The platform is designed to create low friction solutions for SPAC sponsors, as well as underwriters. In a market which is not “one size fits all”, Mr. Coffin states, “TerraNova has curated multiple investors for a variety of sectors and profiles, with a target range between $50 to $400 Million in funding solutions”.

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. http://www.terracap.com.