FZT - SPAC Fast Acquisition II ticks higher on deal to take Falcon's Beyond public

SPAC Fast Acquisition Corp. II ( NYSE: FZT ) ticked up 0.5% after it agreed to take entertainment destination resort development company Falcon's Beyond public.

The transaction values the combined company at a pro forma enterprise value of about $1 billion, according to a statement. The deal is expected to deliver up to $282 million in gross cash proceeds and includes a $60 million private placement investment by Katmandu Collections LLLP, an existing holder of equity in Falcon's Beyond.

The Fast Acquisition Corp. II deal ( FZT ) comes after Ruby Tuesday founder Sandy Beall's other SPAC, Fast Acquisition Corp. ( FST ), mutually terminated a deal to take billionaire Tilman Fertitta's Entertainment company public in December.

Th Falcon's Beyond deal is expected to close later this year or in the first quarter of 2023. Falcon’s Beyond’s business segments’ list of client and IP collaborators includes Walt Disney World, Universal Studios, SeaWorld Parks, Atlantis, Marvel, National Geographic, Lego, Hard Rock, Formula 1 and others.

In an effort to limit redemptions in the deal, 50% of the position of each non-redeeming stockholder of FAST II’s will automatically convert into convertible preferred equity with an 8% dividend and $11.00 conversion price, according to the statement.

Guggenheim is serving as financial advisor to Falcon’s Beyond. Jefferies is serving as lead financial advisor and capital markets advisor to FAST II.

Recall last March, FAST II ( FZT ) raised $200 million in an IPO.

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