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Blackstone-Backed Finance Of America Plans $1.9B SPAC Merger To Go Public: WSJ

Blackstone-Backed Finance Of America Plans $1.9B SPAC Merger To Go Public: WSJ

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The Blackstone Group Inc (NYSE: BX)-backed Finance of America Equity LLC is planning to go public through a merger with a blank check company, the Wall Street Journal reported Monday.

What Happened: The consumer-lending platform is expected to merge with special purpose acquisition company Replay Acquisition Corp (NYSE: RPLA) in a deal that will give it a valuation of $1.9 billion, people familiar with the matter told the Journal.


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Institutional investors would reportedly make a private investment of $250 million in Finance of America as it goes public.

The deal is expected to leave Blackstone with 70% ownership of the company.

The consumer lender was originally considering going public through an initial public offering but began negotiating with the founders of Replay Acquisition in the summer, the Journal reported.

Why It Matters: Finance of America’s services span mortgages, reverse mortgages, commercial-real-estate loans, and fixed income investing.

The flurry of activity around SPACs continues unabated. Last month, United Wholesale Mortgage, the biggest wholesale mortgage originator in the United States, was reported to be considering a merger with the blank check company Gores Holdings IV Inc (NASDAQ: GHIV) at a record valuation of $16.1 billion. 

Japanese conglomerate Softbank Group Corp (OTC: SFTBY) is also preparing to launch a SPAC in two weeks’ time as it remains flush with liquidity. 

Chamath Palihapitiya’s three SPAC firms raised $2.1 billion IPOs, last week. 

This month, Los Angeles-based Fisker Inc, an EV startup, is expected to go public by merging with Spartan Energy Acquisition Corp (NYSE: SPAQ).

Price Action: Blackstone Group shares closed almost 0.5% higher at $54.97 on Monday. On the same day, Replay Acquisition shares closed nearly 0.2% lower at $10.26.

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Blackstone-Backed Finance of America Is Set for IPO

Blackstone-Backed Finance of America Is Set for IPO

Consumer-lending platform and

Blackstone Group Inc.

BX 0.46%

portfolio company Finance of America Equity Capital LLC is set to go public with a valuation of $1.9 billion through a blank-check merger, this year’s hottest way to list shares, according to people familiar with the matter.

Finance of America is set to merge with the special-purpose acquisition company, or SPAC,

Replay Acquisition Corp.

RPLA -0.58%

, the people said. In conjunction with the merger, institutional investors will also make a private investment of $250 million in the company. In all, the deal will leave the consumer lender’s founder and funds managed by Blackstone with a 70% ownership stake.

SPACs are all the rage in 2020, quickly having become a favored way for companies to go public in a year when initial public offerings are hotter than ever. Their popularity is a sign that there is more demand for newly listed companies than there are companies going public. So far this year, companies have raised more than $109 billion going public in the U.S., surpassing every other full year on record, according to Dealogic, whose data go back to 1995. SPACs have accounted for almost half of that total.

The sole purpose of SPACs, which are also known as blank-check companies, is to raise money to acquire a private target and take it public. Founders of these shell companies pitch their names or expertise in certain industries; once they have raised a certain amount of money they have a specific amount of time, typically two years, to identify a target. Announced deals are subject to shareholder approval. Finance of America’s services include traditional mortgages, reverse mortgages, commercial-real-estate loans and fixed-income investing. It has grown via a series of acquisitions and over the past roughly five years as a portfolio company of Blackstone’s

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Car Finance Market Size to Grow $2.33 Billion, Globally, by 2027 at 14.3% CAGR: Allied Market Research

Car Finance Market Size to Grow $2.33 Billion, Globally, by 2027 at 14.3% CAGR: Allied Market Research

PORTLAND, Ore., Oct. 12, 2020 /PRNewswire/ — Allied Market Research published a report, titled, “Car Finance Market by Distribution Channel (Banks, OEMs, Credit Unions, and Others), Vehicle Age (New Vehicles and Used Vehicles), Application (Personal and Commercial), and Purpose (Loans and Lease): Global Opportunity Analysis and Industry Forecast, 2020–2027.” According to the report, the global car finances industry was pegged at $1.29 billion in 2019, and is expected to hit $2.33 billion by 2027, registering a CAGR of 14.3% from 2020 to 2027.

Drivers, restraints, and opportunities-

Rise in global average price of automobiles and increase in demand for vehicles fuel the growth of the global car finance market. On the other hand, emergence of rideshare services and surge in debts from various borrowers curtail down the growth to some extent. However, enactment of technologies in existing product lines and untapped potential of emerging economies are expected to create multiple opportunities for the key players in the industry.

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Covid-19 scenario-

  • The outbreak of the pandemic has resulted in sharp decline in consumer trends and preferences toward purchasing cars. Accordingly, the global car finance market has been considerably affected. However, the overall situation is gradually being ameliorated across the world and the market is expected to get back to its position soon.
  • At the same time, it’s worth mentioning that people across the world have started preferring private way of transportation over selecting public transport which, in turn, has provided the market with a mixed effect.

The banks segment to lead the trail by 2027-

Based on distribution channel, the banks segment accounted for nearly two-fifths of the global car finance market share in 2019 and is anticipated to maintain the lion’s share throughout the study period. The OEMs segment,

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India finance minister announces steps to boost consumer demand

India finance minister announces steps to boost consumer demand

NEW DELHI, Oct 12 (Reuters)India’s finance minister on Monday announced steps to stimulate consumer demand including advance payment of a part of the wages of federal government employees for spending during the festival season, part of efforts to bolster the pandemic-hit economy.

The government will also allow its employees to spend travel allowances that are an income-tax-exempt part of their salaries on goods and services, Nirmala Sitharaman told a news briefing.

“This is expected to create a consumer demand of about 280 billion rupees ($3.83 billion),” she said.

Prime Minister Narendra Modi’s government, which imposed a tough lockdown to stem the spread of the coronavirus in March, is pushing ahead with a full opening to try to boost the economy ahead of the usually high-spending festival season.

($1 = 73.1541 Indian rupees)

(Reporting by Aftab Ahmed and Manoj Kumar; Editing by Catherine Evans)

(([email protected]; +91 11 4954 8029; Reuters Messaging: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Finance Minister Sitharaman announces proposals to stimulate consumer demand

Finance Minister Sitharaman announces proposals to stimulate consumer demand

New Delhi [India], October 12 (ANI): Trying to give a boost to the plummeting economy, Finance Minister Nirmala Sitharaman on Monday announced two proposals — Leave Travel Concession (LTC) Cash Voucher Scheme and Special Festival Advance Scheme — to stimulate consumer demand.

This comes a few hours ahead of the crucial 43rd Goods and Services Tax (GST) Council meeting to be chaired by Union Finance Minister Nirmala Sitharaman.

The Finance Minister is addressing at a time when the country’s GDP had contracted 23.9 per cent during the April-June quarter. This quarter took the hardest hit of coronavirus-induced lockdown across the country. The Reserve Bank of India has predicted that the whole financial year’s GDP would shrink 9.5 per cent in the current fiscal.

“The COVID-19 pandemic has adversely affected the economy. The needs of the poor and weaker sections were addressed in various announcements by the government. Supply constraints have somewhat got eased but consumer demand still needs to be given a boost,” Sitharaman said during a press conference.

“The proposals being presented are designed in a way that they can stimulate demand by front-loading/advancing some of the expenditure with some offsetting changes. Others are directly linked to an increase in the GDP,” she explained.

Sitharaman said there are indications that savings of government and organised sector employees have increased, “We want to incentivise such people to boost demand for the benefit of the less fortunate. We are presenting two proposals — the Leave Travel Concession (LTC) Cash Voucher Scheme and Special Festival Advance Scheme — to stimulate consumer spending.”

Finance Minister said under the LTC Cash Voucher Scheme, government employees can opt to receive cash amounting to leave encashment plus three times ticket fare, to buy items, which attract GST of 12 per cent or more. “Only digital transactions

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