A very superior blank check: Hennessy Capital Acquisition II files and sets terms for $175 million IPO

Hennessy Capital Acquisition II, a blank check company focused on acquiring businesses in the industrial manufacturing and distribution sector, announced terms for its IPO on Tuesday.

The Houston, TX-based company plans to raise $175 million by offering 17.5 million units at a price of $10. At that price, the SPAC would command a market value of $219 million. Each unit consists of one common share and one warrant, which entitles the holder to purchase one-half of one share of common stock at a price of $5.75 per half share.

The company is led by Chairman and CEO Daniel Hennessy, who also serves as founder, Chairman and CEO of sponsor Hennessy Capital. In January 2014, management raised $100 million through the IPO of blank check company Hennessy Capital Acquisition. The SPAC acquired Blue Bird (NASDAQ: BLBD) in February 2015, a bus manufacturer with a market cap of $273 million. Sponsor Hennessy Capital, which is controlled by Daniel Hennessy, will retain an 18% stake after the IPO, and other directors will own 2%.

Hennessy Capital Acquisition II, which was founded in 2015, plans to list on the NASDAQ under the symbol HCACU. UBS Investment Bank, Cantor Fitzgerald and BMO Capital Markets are the joint bookrunners on the deal. No pricing date was disclosed.