Horizon Acquisition II announced that it has agreed to terminate its merger agreement with Flexjet, and will now redeem shares and liquidate. The $3.1 billion deal was announced six months ago, and the SPAC had already arranged a backstop of up to $300 million.
The parties have signed an agreement terminating the deal on mutually acceptable terms, however, Flexjet as part of that agreement agrees to pay a termination fee of approximately $30 million to Horizon.
As a result of the payment and after satisfying its liabilities for expenses and working capital loans, Horizon said it expects to redeem all Class A shares for a redemption price of approximately $11.33 per share. This represents an expected increase of approximately $1.30 per share over the current $10.03 per share amount in Horizon's trust.
Horizon's current termination date is Sept. 30, although the company in a press release said it will not be able to pursue an alternative business combination.
Share redemptions are expected to begin April 26.
Horizon's sponsor, which is an affiliate of eldridge industries, owns 87.7% of the SPAC's Class A shares and all Class B shares. The Class B shares will not receive any portion of the final distribution amount.
The sponsor and affiliates advanced working capital loans in 2022 and 2023 totaling nearly $1.8 million.
Flexjet is engaged in the private aviation sector with a range of market offerings that reach private jet users through various branded storefronts that target specific private flying needs. Read more.
Source: Horizon Acquisition II will Liquidate, Terminates Flexjet Deal