Oaktree Capital, Ballmer Bet $315 Million on Aspiration Before SPAC Deal - Bloomberg

Oaktree Capital, Ballmer Bet $315 Million on Aspiration Before SPAC Deal - Bloomberg

Oaktree Capital Management LP and investment affiliates of billionaire Steve Ballmer have committed $315 million in additional financing to green fintech company Aspiration ahead of its merger with InterPrivate III Financial Partners Inc., a blank-check firm.

The financing includes $65 million, of which about $50 million is structured as convertible preferred stock drawn by Aspiration that converts into equity at an equivalent price of $11 a share, InterPrivate’s Ahmed Fattouh said in an interview. It separately features $250 million in non-convertible perpetual preferred stock set to fund Wednesday, and which pays an 8% annual dividend and can be redeemed after nine years, said Aspiration Chief Executive Officer Andrei Cherny. The remaining $15 million is a private investment in public equity, or PIPE, to fund upon the deal’s completion.

“Given the current market environment, we are very pleased to have raised equity capital at these terms,” Fattouh said. “The capital infusion provides more certainty that Aspiration can execute on its growth plan.”

Los Angeles-based Aspiration, which counts actors Orlando Bloom and Leonardo DiCaprio among investors, in August agreed to merge with the InterPrivate vehicle, confirming an earlier Bloomberg News report. It said it had secured a $200 million PIPE, from investors including Bernard Arnault’s family office Financiere Agache, Doha Venture Capital, Serengeti Asset Management and Canadian rapper Drake.