Cerberus Capital's ICT entity eyes $500m in IPO

17 March 2021 | Melanie Mingas

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Cerberus Capital Management's second blank cheque company targeting the ICT industry, is looking to raise US$500 million in its IPO.

The entity, called Cerberus Telecom Acquisition II, committed to the target in a media announcement and confirmed it had already "filed confidentially on February 25, 2021". Deutsche Bank is the sole bookrunner on the deal.

The announcement also revealed the names of the company's top directors: it will be led by chairman Frank Bruno, who is co-CEO of Cerberus Capital Management's global investment activities, and CEO and director Timothy Donahue, who previously served as CEO of Nextel Communications and helped facilitate its merger with Sprint.

The New York-based company will offer 50 million units at $10, each consisting of one share of common stock and one-fourth of a warrant, exercisable at $11.50. At the proposed deal size, Cerberus Telecom Acquisition II would command a market value of $625 million.

It will trade on the NYSE under the symbol CTII.U.

In the announcement Cerberus also provided an update on its first SPAC, which launched in October.

It raised $250 million against an anticipated total deal size of $511 million and as reported by Bloomberg on 12 March, is currently pending an acquisition of IoT provider KORE Wireless Group.

KORE has agreed to go public through the first SPAC in a deal that values the combined company at about $1 billion, including debt, according to the latest details.

Announcing the first SPAC back in October, Cerberus said: "Currently, there is no public market for our securities. We intend to apply to have our units listed on the New York Stock Exchange, or the NYSE. We expect that the Class A ordinary shares and warrants comprising the units will begin separate trading on the NYSE on the 52nd day following the date of this prospectus unless the representatives of the underwriters permit earlier separate trading and we have satisfied certain conditions.

“We are an emerging growth company under applicable federal securities laws and will be subject to reduced public company reporting requirements.”