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Bowlero to go public via a SPAC at $2.6B

Most Americans have visited Bowlero Corp at some point as it is the largest 10-pin bowling center in the world, having close to 320 centers.

bowlero-site

Most of these are located in North America. Its former name is Bowlmor AMF, founded and created in 2013, reorganization of AMF Bowling worldwide.

This bright star in the world of casual recreational sports has seen its ups and downs, though. At one point, this company had filed for Chapter 11 bankruptcy. Still, it bounced back, chiefly by converting debt into equity with the help of term and revolving loans from Cerberus Capital Management and Credit Suisse affiliates.

Ten-pin bowling was earlier a not-very active or vibrant industry, but Bowlero brought it all together and added attractive features like Blacklight bowling, Lounge Seating, and Epic Eats, among others in its bowling centers. This has made patrons really start enjoying this sport and made them look forward to spending their evenings at Bowlero. Bowlero Strike and Bumper Cars are signature attractions that would leave the bowling patron asking for more. With this, the cash registers have constantly been ringing here, seeing a sharp rebound increase after the pandemic-related restrictions were eased a little.

Having achieved considerable success and growth over the years, Bowlero is now all set for an IPO at a current valuation estimated at $2.6 billion.
After a SPAC (Special Purpose Acquisition Company) merger deal with blank-check firm Isos Acquisition Corp., it instructs that a blank-check company is one in its developmental stage with no specific business plan. It simply intends to merge with or acquire another company. While the former gets a share of the immense growth potential of an already-booming business, the latter receives capital funds pumped into its financial system through the IPO.

According to Isos and Bowlero, it has raised $450 million worth of investment in public equity (capital investment) from private sources (PIPE). This comprises both convertible preferred and common stock up to $345 million in cash. It also consists of $105 million of existing capital investment in Bowlero by Atairos, its partner company. The prominent investors behind this PIPE (Private Investment in Public Equity) transaction are Wells Fargo Asset Management, The Donerail Group LP, Soros Fund Management LLC, Brigade Capital Management and Apollo Global Management Inc.

According to Bowlero and Atairos, the perpetual convertible preferred stock yields a dividend of 5.5% and a conversion price of $13. After two years, pending the common share price at least $16.90, the perpetual convertible preferred stock would get converted to common stock.

TomShannon

Tom Shannon, founder of Bowlero, and Brett Parker, the Finance in-charge, feel optimistic about its future and not only because the post-pandemic monetary gains have been promisingly noteworthy. This SPAC deal will allow for more bowling center acquisitions of the independent, small, family-owned variety.


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