Falcon’s Beyond to go public via SPAC merger with Fast (FZT)

Highlights:

• Falcon’s Beyond to merge with Fast Acquisition Corp. II to go public.
• The combined value of the entity will be about US$1 billion, including debt.
• The company will trade on Nasdaq under the FBYD ticker.

Entertainment company Falcon’s Beyond Global LLC plans to go public via a merger with blank-check firm Fast Acquisition Corp. II (NYSE: FZT), Bloomberg reported.

People interviewed by Bloomberg said on condition of anonymity that the transaction, which will take the value of the combined entity to US$1 billion, including debt, is likely to be announced on Tuesday.

Shareholders of Falcon’s Beyond are rolling their equity positions in the company and will probably own 80% of the combined firm, assuming there are no redemptions.

The company is all set to trade on the Nasdaq under the ticker symbol FBYD.

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The investors and share allocations

The deal will have Katmandu Collections LLLP investing US$60 million via a private placement, and the Fast special purpose acquisition company has conceded to forfeit 20% of its founder shares. These shares will be allocated to the private-placement investors and non-redeeming shareholders, the people said.

To minimize redemptions, 50% of all SPAC shares will become convertible preferred equity 8% a dividend. It can be converted at US$11.

No statement has been issued from any of the two companies so far.

Orlando, Florida-based Falcon’s Beyond is headed by Executive Chairman Scott Demerau and Chief Executive Officer Cecil Magpuri.

In November, the company announced a collaboration with Melia Hotels International SA to build and develop a theme park in Punta Cana, Dominican Republic.

Other projects in Tenerife, Spain, and Playa Del Carmen, Mexico are also in the pipeline.

Falcon’s Beyond also said separately that it is developing a theme park with Qiddiya Investment Co. on the outskirts of Riyadh, Saudi Arabia’s capital.

Bottom line:

The Fast SPAC was founded by Doug Jacob and is led by CEO Sandy Beall. The company had raised US$222 million in a March 2021 IPO.