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A fund formed to make acquisitions, managed by private equity magnate Tom Hicks, plans to raise up to $230 million in an initial public offering.
The planned fund, Hicks Acquisition Co. II Inc., is Hicks' second special purpose acquisition company, or SPAC. SPACs are often referred to as "blank check" companies. They go public to raise capital to make acquisitions.
The first fund, Hicks Acquisition Co. I Inc., became a subsidiary of oil and gas company Resolute Energy Co. in September 2009, which then listed on the New York Stock Exchange. The first Hicks SPAC had gone public in Sept. 2007.
Most SPACs must combine with or acquire another company within a certain time frame, or the fund is liquidated and shares redeemed. Hicks said in a filing with the Securities and Exchange Commission Monday that it will have 21 months from the closing of the IPO to consummate a deal.
Hicks has invested in media, consumer goods companies such as Dr. Pepper/Seven Up Cos., energy, real estate and sports teams, including Major League Baseball's Texas Rangers. He is trying to sell the Rangers, which are in Chapter 11 bankruptcy after the Hicks Sports Group defaulted on more than $525 million in loans last year.
The filing said the directors and senior executives of the new Hicks had all been involved with Hicks Acquisition Co. I.
The Dallas company said it had not identified any acquisition targets, and was not limiting itself to any particular regions of the world or industries.
Hicks will offer 20 million units for $10 apiece. Each unit is made up of a share of common stock and a warrant to purchase a share of common stock for $12. The warrants are exercisable either 30 days after the fund closes a deal or 12 months after the IPO sale is completed.
Citigroup is managing the IPO.