Local Bounti’s $1.1 Billion SPAC Merger with Leo Holdings

Orrick Herrington & Sutcliffe LLP advised Local Bounti on the deal., while Kirkland & Ellis LLP served as legal advisor to Leo. Debevoise & Plimpton LLP served as legal advisor to the placement agents.

Breakthrough U.S. indoor agriculture company Local Bounti Corporation (Local Bounti) has agreed to go public through a merger with Leo Holdings III Corp. (Leo or Leo Holdings) (NYSE: LIII), a publicly-traded special purpose acquisition company, pursuant to a definitive business combination agreement. The transaction values the combined company at an equity value of $1.1 billion and upon closing of the transaction, the combined company is expected to remain listed on the New York Stock Exchange under the symbol “LOCL”.

Strategic partners include food and agriculture industry giant Cargill and Sarath Ratanavadi, CEO of Gulf Energy Development Public Company Limited ? Thailand’s largest private energy and infrastructure company and one of the world’s leaders in sustainable energy ? which are investing in the combined company through a private investment in public equity (PIPE) arrangement. Cargill is also expected to provide $200 million in debt financing to accelerate Local Bounti’s expansion plans. Local Bounti plans to use the capital to build local strategically-located indoor farming facilities across the Western U.S. to provide fresh, superior-tasting, long-lasting and sustainably-grown produce with minimal carbon footprint.

As a result of the transaction with Leo, Local Bounti will receive up to $400 million in gross proceeds (assuming no redemptions), including $125 million from a fully committed PIPE anchored by existing investors and new investors, including Fidelity Management & Research Company LLC, BNP Paribas Asset Management Ecosystem Restoration Fund and Cargill.

Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc. and Nomura Securities International, Inc. served as placement agents on the PIPE. Morgan Stanley & Co. LLC and Nomura Greentech served as financial advisors to Local Bounti and Orrick Herrington & Sutcliffe LLP served as legal advisor to Local Bounti.

The Orrick team advising Local Bounti is led by Matthew Gemello (Picture) and Albert Vanderlaan and includes Jim Kramer, Juliano Banuelos, Samantha Caluori, Rachel Rice, Angela Chen, Craig Shepard, Fallon Griffin, J. T. Ho, Steven Malvey, Pete Elias, Nicole Walsh, Sarah Schaedler, Daniel Yost, Harry Clark, Lynne Hirata, Michael Wiesner, Jennifer Clarke-Smith, Scott Porter, Jennifer Wang, Kimberly Loocke and Karen Cannon.

The Kirkland team advising Leo included corporate partners Damon Fisher and Jennifer Yapp, capital markets partners Christian Nagler, Brooks Antweil and Alla Digilova, tax partners Mike Beinus and Vivek Ratnam, and corporate associates Michael Chung, Alex Blaznik, Rigoberto Chavez and Aaron Simons.

The Debevoise team was led by capital markets partner Morgan Hayes and included associates Christopher Freeman and Helen Wang.

Involved fees earner: Alla Digilova – Cahill Gordon & Reindel; Christopher Freeman – Debevoise & Plimpton; Morgan Hayes – Debevoise & Plimpton; Helen Wang – Debevoise & Plimpton; Brooks Antweil – Kirkland & Ellis; Michael Beinus – Kirkland & Ellis; Alex Blaznik – Kirkland & Ellis; Rigoberto Chavez – Kirkland & Ellis; Michael Chung – Kirkland & Ellis; Damon Fisher – Kirkland & Ellis; Christian Nagler – Kirkland & Ellis; Vivek Ratnam – Kirkland & Ellis; Aaron Simons – Kirkland & Ellis; Jennifer Yapp – Kirkland & Ellis; Juliano Banuelos – Orrick Herrington & Sutcliffe LLP; Karen Cannon – Orrick Herrington & Sutcliffe LLP; Angela Chen – Orrick Herrington & Sutcliffe LLP; Harry Clark – Orrick Herrington & Sutcliffe LLP; Peter Elias – Orrick Herrington & Sutcliffe LLP; Matthew Gemello – Orrick Herrington & Sutcliffe LLP; Fallon Griffin – Orrick Herrington & Sutcliffe LLP; Lynne Hirata – Orrick Herrington & Sutcliffe LLP; Justin Ho – Orrick Herrington & Sutcliffe LLP; James Kramer – Orrick Herrington & Sutcliffe LLP; Kimberly Loocke – Orrick Herrington & Sutcliffe LLP; Steven Malvey – Orrick Herrington & Sutcliffe LLP; Scott Porter – Orrick Herrington & Sutcliffe LLP; Sarah Schaedler – Orrick Herrington & Sutcliffe LLP; Craig Shepard – Orrick Herrington & Sutcliffe LLP; Albert Vanderlaan – Orrick Herrington & Sutcliffe LLP; Nicole Walsh – Orrick Herrington & Sutcliffe LLP; Jennifer Wang – Orrick Herrington & Sutcliffe LLP; Michael Wiesner – Orrick Herrington & Sutcliffe LLP; Daniel Yost – Orrick Herrington & Sutcliffe LLP;

Law Firms: Cahill Gordon & Reindel; Debevoise & Plimpton; Kirkland & Ellis; Orrick Herrington & Sutcliffe LLP;

Clients: Deutsche Bank Securities; Leo Holdings III; Local Bounti; Morgan Stanley; Nomura;

Author: Martina Bellini