A SPAC That Is Ready To Take Off

Hey There Income Hunters,

It’s funny, I realize that much of the time I am hating on banks. However, when I was trading for UBS, the perks available from the secondary market brokers were just incredible.

So, there was certainly an upside to working for them …

My greatest passions are for skiing and golf, and I was offered trips all over the world to go to great resorts for both.

The best trip without a doubt was to Pebble Beach, where we stayed at a house off the first hole.

It was heaven and I was extremely grateful for the opportunity. I can certainly understand why it has been called the, “greatest meeting of land and sea.”

However, the part of the trip that I’ll never forget was flying round-trip on a NetJets private jet …

It was like flying in someone’s living room, and certainly a special experience. 

Berkshire Hathaway ended up buying NetJets not long after and I always wanted to get a repeat performance someday.

And now I just might!

Maybe not as a passenger — but as an owner … 

You see, I just purchased shares of a special purpose acquisition company (SPAC) that may soar above NetJets as #1 … 

SPAC Force

Now if you are not familiar with SPACs, or blank-check firms as they are also called, they’re shell companies that use proceeds from an initial public offering to sponsor taking a private firm 

public … 

And Wheels Up is the second-largest for-hire private aircraft service after NetJets, according to Forbes …

The SPAC I purchased is Aspirational Consumer Lifestyle (Ticker: ASPL). They raised $240 million in an initial public offering (IPO) last year. The funds are held in a trust account earning interest until a deal is made or expires.

The sponsor funds are further supported by a $550 million private investment in public equity (PIPE) at $10.00 per share, with investors including T-Rowe Price, Franklin advisors and Durable Capital … 

Delta Airlines is a partner of Wheels Up and will have a stake in the company post merger. The airline will also be key in an international expansion.

Business in the private jet industry has regained sales back to pre-covid levels and Wheels Up flew 150,000 passengers last year…

I see this deal being low-risk since the Wheels Up merge with ASPL is expected to close this quarter. And I don’t expect to hold on to the shares post-merger.

The current price is $10.25, so my risk is limited to $.25 if I redeem prior to the merge. My thought is Wheels Up is an excellent company and I think the stock will be above $12 before the deal closes.

Bring It Home

I have to say that investing in a SPAC gave me a feeling of private equity investing, which is exciting… 

For me it was a low-risk bet in a business that may really benefit during an economic reopening, as fears from Covid may still be with us for a while.

Plus the symbol post merge will be UP. That has to be one of the best symbols ever!

And also there is the lingering memory from my flight on NetJets …

Pretty cosy way to fly, right? YOLO!

Live and Trade With Passion My Friends,


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