U.S. Bank is rolling out new solutions for special purpose acquisition companies (SPACs), including segregated trust accounts for SPAC proceeds, statements and secure reporting of activity, and more, according to a press release.
The new features will also let companies hold, invest and disburse funds in accordance with trust agreements, maintain investment books and records, and reconcile cash and transaction activity, the release stated. The bank will serve as a custodian for cash balances, help prepare 10-Qs and 10-Ks, and work on reviewing and providing support for S-1s.
All of these features, according to the release, will help companies with trustee administration and investment and disbursement solutions.
“Our integrated, end-to-end solutions are designed to meet all your SPAC-specific needs with a single provider,” Christine Waldron, chief global strategy officer at U.S. Bank Global Fund Services, a unit of U.S. Bank Wealth Management and Investment Services, said in the release. “Our customized solutions integrate with your existing workflows to streamline processes, decrease turnaround times and improve the quality of investment and disbursement services.”
SPACs, which are shell companies only formed for the purpose of helping other companies go public without the usual process of an initial public offering (IPO), have seen an increase in popularity over the past year.
“Our dedicated team has the knowledge and expertise to support the unique requirements of SPAC sponsors,” Waldron said in the release. “We are proud to offer a high level of service and a seamless experience to help sponsors expand their portfolio of products.”
SPACs have seen some scrutiny from the Securities and Exchange Commission (SEC), with the regulator warning of the “risks, complexities and challenges related to SPAC mergers, including careful consideration of whether the target company has a clear, comprehensive plan to be prepared to be a public company,” PYMNTS reported.
The value of SPACs has risen to $170 billion in the past year.