NuScale Power continues to pull more capital into its SPAC merger, positioning the Portland-based nuclear startup for additional proceeds if it goes public as planned.
The latest infusion, from Nucor Corp., the nation’s largest steel producer, adds $15 million in private investment in public equity to the deal.
“PIPE,” as it's known, provides committed funding that can bolster such mergers, which have increasingly seen investors in special purpose acquisition companies redeem their shares before deals close.
NuScale and SPAC partner Spring Valley Acquisition Corp. had $181 million in PIPE when they announced their tie-up in December. But with the Nucor contribution the PIPE has swollen in increments to $236 million.
“NuScale continues to build an impressive and diverse group of investors and strategic partners who recognize the compelling value of our carbon-free energy solution and our leading position in the global SMR race,” CEO John Hopkins said in a statement.
Spring Valley has $232 million in trust, so the merger could deliver more than $400 million to NuScale, depending on how much of that Spring Valley money stays in. When investors redeem their shares, they get their money back plus interest.
Nucor’s move comes as investor increasingly look for lower carbon emissions from the steel industry.
“As America’s largest steel producer and a significant energy consumer, we are looking for safe and reliable sources of power generation that are consistent with our sustainability goals,” Nucor CEO Leon Topalian said in a statement. “The continued development of small modular nuclear reactors is critical to ensure our nation has carbon-free, baseload power, which is why we are making this investment in NuScale.”
NuScale, majority-owned by Fluor Corp. (NYSE: FLR), has designed the first small modular reactor to receive a final safety evaluation report from the Nuclear Regulatory Commission. It employs 485 people.
The company says it expects its SPAC deal, which would take it public on the New York Stock Exchange with the ticker symbol SMR, to close this quarter.
