SPAC Colonnade Acquisition II files for a $250 million IPO

Colonnade Acquisition II, the second blank check company formed by the founders of Colonnade Properties and Trafelet & Company, filed on Friday with the SEC to raise up to $250 million in an initial public offering.

The West Palm Beach, FL-based company plans to raise $250 million by offering 25 million units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable at $11.50. Surveyor Capital, an affiliate of the sponsor, intends to purchase $25 million worth of units in the offering. The company may raise an additional $25 million at the closing of an acquisition pursuant to a forward purchase agreement with the Surveyor Capital. At the proposed deal size, Colonnade Acquisition II would command a market value of $313 million.

The company is led by Chairman Joseph Sambuco, the founder and CEO of Colonnade Properties, which he founded along with Prudential Real Estate Investors, and CEO and Director Remy Trafelet, the founder and CEO of private investment firm Trafelet & Company. The company plans to target businesses with favorable growth prospects, that provide attractive risk-adjusted returns on invested capital, and offer compelling valuations relative to its peers. It plans to focus on businesses with enterprise values between $1 billion and $3 billion.

Management's previous SPAC, Colonnade Acquisition (CLA; +47% from $10 offer price), went public in August 2020 and has a pending merger agreement with lidar firm Ouster.

Colonnade Acquisition II was founded in 2020 and plans to list on the NYSE under the symbol CLAA.U. The company filed confidentially on December 31, 2020. Barclays and Deutsche Bank are the joint bookrunners on the deal.