Tender Offer for $75M of Pathfinder Acquisition Corporation (PFDR) Stock

Frequent SPAC investors Francisco Partners announced this morning that they have launched a cash tender offer to purchase 7,500,000 Pathfinder (NASDAQ:PFDR) Class A shares for $10 per share. The offer will expire on January 4, 2023, at 11:59 p.m. EST.

Francisco Partners is also to acquire a one-fifth warrant per share and holders and the move is a part of a commitment letter it signed on October 3 and equity grant agreement announced November 14. Under this agreement, Francisco Partners is to receive an additional 1,000,000 shares and Movella is to issue $25 million in senior secured notes to it.

These notes hold a 9.25% interest rate, which is to increase by 0.5% each year on the anniversary of the November 14 signing.  This financing may form an important backstop as Pathfinder may need to extend its February 19, 2023 completion deadline.

Pathfinder initially announced its $537 million combination with Movella on October 4 and terminated an earlier combination agreement with ServiceMax in December 2021. San Jose, California-based Movella provides motion-capture hardware and software for the entertainment, health and manufacturing industries.