B. Riley Principal Merger II, the second blank check company formed by diversified financial services firm B. Riley Financial, raised $175 million by offering 17.5 million units at $10. The company originally planned to offer 20 million units, making B. Riley Principal Merger II the first SPAC to downsize its offering since December 2018. Each unit consists of one share and one-half of a redeemable warrant exercisable at $11.50. At $10, B. Riley Principal Merger II commands a market value of $232 million. The company plans to raise an additional $25 million through a forward purchase agreement with an affiliate of its sponsor.
The company is led by CEO/CFO Daniel Shribman and Chairman Bryant Riley, who serve as CIO and co-CEO of B. Riley Financial (Nasdaq: RILY), respectively. The firm's previous SPAC, B. Riley Principal Merger, completed its acquisition of Alta Equipment (ALTG) in February 2020. While it hasn't identified a particular industry or geography of focus, B. Riley Principal Merger II intends to target established businesses that have an aggregate enterprise value of approximately $400 million to $1 billion. The company improved terms twice before pricing, by decreasing the time to complete its combination and increasing the funding of its trust.
B. Riley Principal Merger II plans to list on the NYSE under the symbol BMRG.U. B. Riley FBR acted as a lead manager on the deal.
