No surprise: Goldman Sachs pulls SPAC offering

Goldman Sachs bowed to reality this week when it decided that it couldn't take Liberty Lane after all. The offering for the special purpose acquisition company (SPAC) was being closely watched as a test of how the once-vibrant SPAC market was holding up. As of now, it looks like the entire market will be put on hold. Goldman Sachs couldn't find enough buyers despite some compelling reasons, notes the New York Times. Liberty Lane insiders took just 7.5 percent of the equity, compared to a more standard 20 percent. In addition, some of the warrants held by insiders had relatively high strike prices. But despite an unusually investor friendly deal, it couldn't be priced. That says a lot about the market. Look for more SPACs to return funds to investors soon.

For more:
- here's the New York Times article

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