PIPE
From ACT Wiki
Special purpose vehicles - acquisitions - Special Purpose Acquisition Companies - private equity.
Abbreviation for Private Investment in Public Equity.
A PIPE is an arrangement in which private financial investors take minority stakes in a SPAC, at a discount to the market price of the SPAC’s shares.
The purpose is to support the financing of the SPAC's combination with its acquisition target.
- Example - Virgin Orbit's $100m PIPE
- "Virgin Orbit, a small satellite launch service provider, is going public through a merger with a blank-check vehicle that values it at about $3.2 billion.
- The deal with NextGen Acquisition Corp. II, announced on Monday, includes $100 million in funding from Boeing Co, AE Industrial Partners and others in the form of private investment in public equity, or PIPE...
- The deal is expected to provide $483 million in proceeds to the combined company, which will list on the Nasdaq under the symbol "VORB" after the merger."
- Source - Reuters - 24 August 2021