Blue Nile jewelers set to return to the public market through SPAC merger

Jump to heading Blue Nile jewelers set to return to the public market through SPAC merger

Blue Nile Inc., an online jewelry store, has decided to re-enter the public market via a combination with a blank check company valued at $873 million.
The deal with Mudrick Capital Acquisition Corp. II is estimated to create around $450 million in capital before expenditures, according to a statement issued by the businesses on Friday.

The transaction involves $80 million of committed cash, with approximately $50 million pre-funded from Bain Capital Private Equity, Adama Partners, Bow Street and Mudrick Capital. According to the release, the transaction also includes $50 million in additional preferred stock supplied by Mudrick Capital.

The merged company's $873 million pro forma implied equity value is based on the private investment in public equity at $10.15 per share, assuming no redemptions by SPAC investors.

Blue Nile, located in Bellevue, Washington, will be renamed and will be listed on the Nasdaq. The existing leadership team, which includes Blue Nile CEO Sean Kell, will lead the firm.

Blue Nile is set to return to the public market following a $500 million takeover by Bain and Bow Street in 2016.

In its first public offering in 2020, the Mudrick SPAC raised $316 million, including greenshoe shares.

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(As of June 16, 2022, funds managed by Cohanzick Management, LLC and its affiliates own a position in Mudrick Capital Acquisition Corp. II)