PromoTheRobot Posted June 30, 2023 Share Posted June 30, 2023 https://finance.yahoo.com/news/drained-cash-buffalo-bills-owner-142011416.html So if I understand this story correctly, Terry Pegula formed a SPAC (Special Purpose Acquisition Corporation) and had been looking for profitable ventures to partner with or acquire. After looking around he found a partner in a company called Abacus that buys life insurance policies. But it seems Terry's SPAC investors, 90% apparently, decided to cash out before the Abacus deal was consummated. So how do I read this story? Is it just business as usual, or an early indicator that Terry might be going through a cash flow problem, or worse? Quote Link to comment Share on other sites More sharing options...
Punching Bag Posted June 30, 2023 Share Posted June 30, 2023 Opposite. He had cash to spare and stayed in while those who bought in with him bought out not making money. He is part of one of the few SPACs making money these days. 1 Quote Link to comment Share on other sites More sharing options...
Augie Posted June 30, 2023 Share Posted June 30, 2023 2 minutes ago, Limeaid said: Opposite. He had cash to spare and stayed in while those who bought in with him bought out not making money. He is part of one of the few SPACs making money these days. If I had to guess, I’d say this sounds plausible. He’s looking for places to invest his piles of cash. If some people backed out that’s curious and means additional risk, but big risks can mean big rewards too. He’s a smart guy, I wouldn’t bet against him. I am more likely to figure out the Diggs/Josh relationship than decipher this situation, but it will be interesting to follow. 1 Quote Link to comment Share on other sites More sharing options...
T&C Posted June 30, 2023 Share Posted June 30, 2023 I saw this yesterday... the "Drained of Cash" hook must get a lot of clicks lol. 1 Quote Link to comment Share on other sites More sharing options...
stuvian Posted June 30, 2023 Share Posted June 30, 2023 I suspect that the bit about people locking up their capital for 24 months made some investors gun shy Quote Link to comment Share on other sites More sharing options...
Just Jack Posted June 30, 2023 Share Posted June 30, 2023 Ask @Chef Jim. Quote Link to comment Share on other sites More sharing options...
Special K Posted June 30, 2023 Share Posted June 30, 2023 1 hour ago, T&C said: I saw this yesterday... the "Drained of Cash" hook must get a lot of clicks lol. It got a click from me!! "Pegula" and "drained of cash" are two things I don't want to see in the same sentence like, ever. Quote Link to comment Share on other sites More sharing options...
Mike in Horseheads Posted June 30, 2023 Share Posted June 30, 2023 3 hours ago, Augie said: If I had to guess, I’d say this sounds plausible. He’s looking for places to invest his piles of cash. If some people backed out that’s curious and means additional risk, but big risks can mean big rewards too. He’s a smart guy, I wouldn’t bet against him. I am more likely to figure out the Diggs/Josh relationship than decipher this situation, but it will be interesting to follow. I would hope he has advisors investing his cash for him. Quote Link to comment Share on other sites More sharing options...
Jauronimo Posted June 30, 2023 Share Posted June 30, 2023 12 hours ago, PromoTheRobot said: https://finance.yahoo.com/news/drained-cash-buffalo-bills-owner-142011416.html So if I understand this story correctly, Terry Pegula formed a SPAC (Special Purpose Acquisition Corporation) and had been looking for profitable ventures to partner with or acquire. After looking around he found a partner in a company called Abacus that buys life insurance policies. But it seems Terry's SPAC investors, 90% apparently, decided to cash out before the Abacus deal was consummated. So how do I read this story? Is it just business as usual, or an early indicator that Terry might be going through a cash flow problem, or worse? Terry's SPAC has nothing to do with his own net worth. A SPAC is a shell company that raises funds to pursue an acquisition. Investors fund the SPAC by buying shares on the open market. SPAC's have 2 years to make a deal or return money to shareholders. Its basically a bet on the management team. in 2020, SPACs were the hottest thing on the market. 3 years later, almost every SPAC that closed a deal is worth significantly less than par ($10). The market has soured on SPACs. Looks like Terry's SPAC allowed holders to redeem shares for cash as part of the shareholders agreeing to extend the life of the SPAC beyond the initial contractual life of the vehicle. This just means there is less cash available to Terry to close a deal. He can still solicit outside investors, raise debt, or fund it himself if there isn't enough cash left to close Abacus. I haven't seen an indication of deal size or how much $$ the SPAC raised. 2 1 3 Quote Link to comment Share on other sites More sharing options...
Augie Posted June 30, 2023 Share Posted June 30, 2023 9 hours ago, Mike in Horseheads said: I would hope he has advisors investing his cash for him. I think that goes without saying. At that level, there is a team of people managing various parts of his empire. Quote Link to comment Share on other sites More sharing options...
Buffalo Super Fan Posted June 30, 2023 Share Posted June 30, 2023 Translation don’t buy PSL’s save the money Buffalo Bills fans. Until the Buffalo Bills drop PSL’s so the owner pays his fair share of Highmark Stadium 2 by getting stuck with the lack of PSL’s sales watch the Buffalo Bills games at home until PSL’s are dropped by the Buffalo Bills PSE. Go to UB Bulls NCAA MAC college football games $125.00 for a season ticket. Drive to Canada watch the Hamilton Tiger Cats CFL professional football with no PSL’s $220.00 for the season at Tim Horton’s Field is a bargain. Go up there to Canada enjoy some Canadian culture with your football. That is what makes Buffalo so great we have choices between the two countries. As a Buffalonian PSL’s aren’t right someone has to take a stand and say no to PSL’s. Buffalo Super Fan you are cheap? That is right I would never pay money for the right to pay money again to buy a football ticket that is the definition of ripe off. Nothing inside any NFL football stadium is worth paying twice for what you are getting paying once so no go to the Buffalo Bills competition in my opinion. Go Bills! Let’s Go Buffalo Quote Link to comment Share on other sites More sharing options...
Jauronimo Posted June 30, 2023 Share Posted June 30, 2023 31 minutes ago, I am leaving for good said: Translation don’t buy PSL’s save the money Buffalo Bills fans. Until the Buffalo Bills drop PSL’s so the owner pays his fair share of Highmark Stadium 2 by getting stuck with the lack of PSL’s sales watch the Buffalo Bills games at home until PSL’s are dropped by the Buffalo Bills PSE. Go to UB Bulls NCAA MAC college football games $125.00 for a season ticket. Drive to Canada watch the Hamilton Tiger Cats CFL professional football with no PSL’s $220.00 for the season at Tim Horton’s Field is a bargain. Go up there to Canada enjoy some Canadian culture with your football. That is what makes Buffalo so great we have choices between the two countries. As a Buffalonian PSL’s aren’t right someone has to take a stand and say no to PSL’s. Buffalo Super Fan you are cheap? That is right I would never pay money for the right to pay money again to buy a football ticket that is the definition of ripe off. Nothing inside any NFL football stadium is worth paying twice for what you are getting paying once so no go to the Buffalo Bills competition in my opinion. Go Bills! Let’s Go Buffalo You are extra confused today. How do you choose which threads to pollute with your inane ramblings? 1 Quote Link to comment Share on other sites More sharing options...
Augie Posted June 30, 2023 Share Posted June 30, 2023 1 hour ago, Jauronimo said: You are extra confused today. How do you choose which threads to pollute with your inane ramblings? I don’t think he’s leaving for good…… Quote Link to comment Share on other sites More sharing options...
Nextmanup Posted June 30, 2023 Share Posted June 30, 2023 20 hours ago, PromoTheRobot said: https://finance.yahoo.com/news/drained-cash-buffalo-bills-owner-142011416.html So if I understand this story correctly, Terry Pegula formed a SPAC (Special Purpose Acquisition Corporation) and had been looking for profitable ventures to partner with or acquire. After looking around he found a partner in a company called Abacus that buys life insurance policies. But it seems Terry's SPAC investors, 90% apparently, decided to cash out before the Abacus deal was consummated. So how do I read this story? Is it just business as usual, or an early indicator that Terry might be going through a cash flow problem, or worse? You're over-reading. The guy is worth like $6 billion now. He can sell assets and fix any cash flow problem he has. By the way, Pegula didn't do all that stuff, his very smart lawyers did. 1 Quote Link to comment Share on other sites More sharing options...
Doc Posted June 30, 2023 Share Posted June 30, 2023 7 hours ago, Jauronimo said: Terry's SPAC has nothing to do with his own net worth. A SPAC is a shell company that raises funds to pursue an acquisition. Investors fund the SPAC by buying shares on the open market. SPAC's have 2 years to make a deal or return money to shareholders. Its basically a bet on the management team. in 2020, SPACs were the hottest thing on the market. 3 years later, almost every SPAC that closed a deal is worth significantly less than par ($10). The market has soured on SPACs. Looks like Terry's SPAC allowed holders to redeem shares for cash as part of the shareholders agreeing to extend the life of the SPAC beyond the initial contractual life of the vehicle. This just means there is less cash available to Terry to close a deal. He can still solicit outside investors, raise debt, or fund it himself if there isn't enough cash left to close Abacus. I haven't seen an indication of deal size or how much $$ the SPAC raised. Or just buy a ton of GBTC... Quote Link to comment Share on other sites More sharing options...
Buffalo716 Posted July 1, 2023 Share Posted July 1, 2023 (edited) 5 hours ago, Jauronimo said: You are extra confused today. How do you choose which threads to pollute with your inane ramblings? M*** is a hell of a drug 4 hours ago, Augie said: I don’t think he’s leaving for good…… I think he’s a bot Edited July 1, 2023 by Buffalo716 Quote Link to comment Share on other sites More sharing options...
boyst Posted July 1, 2023 Share Posted July 1, 2023 7 hours ago, I am leaving for good said: Translation don’t buy PSL’s save the money Buffalo Bills fans. Until the Buffalo Bills drop PSL’s so the owner pays his fair share of Highmark Stadium 2 by getting stuck with the lack of PSL’s sales watch the Buffalo Bills games at home until PSL’s are dropped by the Buffalo Bills PSE. Go to UB Bulls NCAA MAC college football games $125.00 for a season ticket. Drive to Canada watch the Hamilton Tiger Cats CFL professional football with no PSL’s $220.00 for the season at Tim Horton’s Field is a bargain. Go up there to Canada enjoy some Canadian culture with your football. That is what makes Buffalo so great we have choices between the two countries. As a Buffalonian PSL’s aren’t right someone has to take a stand and say no to PSL’s. Buffalo Super Fan you are cheap? That is right I would never pay money for the right to pay money again to buy a football ticket that is the definition of ripe off. Nothing inside any NFL football stadium is worth paying twice for what you are getting paying once so no go to the Buffalo Bills competition in my opinion. Go Bills! Let’s Go Buffalo I might have thought you were credible until you said enjoy Canadian culture and the CFL. No way. 'f those freeloaders. Quote Link to comment Share on other sites More sharing options...
Gugny Posted July 1, 2023 Share Posted July 1, 2023 On 6/30/2023 at 9:38 AM, Jauronimo said: Terry's SPAC has nothing to do with his own net worth. A SPAC is a shell company that raises funds to pursue an acquisition. Investors fund the SPAC by buying shares on the open market. SPAC's have 2 years to make a deal or return money to shareholders. Its basically a bet on the management team. in 2020, SPACs were the hottest thing on the market. 3 years later, almost every SPAC that closed a deal is worth significantly less than par ($10). The market has soured on SPACs. Looks like Terry's SPAC allowed holders to redeem shares for cash as part of the shareholders agreeing to extend the life of the SPAC beyond the initial contractual life of the vehicle. This just means there is less cash available to Terry to close a deal. He can still solicit outside investors, raise debt, or fund it himself if there isn't enough cash left to close Abacus. I haven't seen an indication of deal size or how much $$ the SPAC raised. Im going to see Tears for Fears at SPAC tomorrow night. 2 Quote Link to comment Share on other sites More sharing options...
Doc Posted July 2, 2023 Share Posted July 2, 2023 3 hours ago, Gugny said: Im going to see Tears for Fears at SPAC tomorrow night. Saw them at Mohegun Sun casino last weekend for $62 apiece. Great show. I had never heard of the opening band (Cold War Kids) but they were pretty good. 1 Quote Link to comment Share on other sites More sharing options...
boyst Posted July 2, 2023 Share Posted July 2, 2023 15 hours ago, Gugny said: Im going to see Tears for Fears at SPAC tomorrow night. 12 hours ago, Doc said: Saw them at Mohegun Sun casino last weekend for $62 apiece. Great show. I had never heard of the opening band (Cold War Kids) but they were pretty good. They're in Raleigh next Saturday. We go to the beach. Id considered waiting and leaving after the rest of the family to go. But they've toured the last few years so I'm hedging I'll have another chance. Quote Link to comment Share on other sites More sharing options...
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