SPAC Colonnade Acquisition II prices $300 million IPO

Colonnade Acquisition II, the second blank check company formed by the founders of Colonnade Properties and Trafelet & Company, raised $300 million by offering 30 million units at $10. Each unit consists of one share of common stock and one-fifth of a warrant, exercisable at $11.50. Surveyor Capital, an affiliate of the sponsor, had indicated on $30 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.

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; +7% from $10 offer price), went public in August 2020 and has a pending merger agreement with lidar firm Ouster.

Colonnade Acquisition II plans to list on the NYSE under the symbol CLAA.U. Barclays and Deutsche Bank acted as lead managers on the deal.