Company: SAC-UN
Filing Date: 2025-11-06
Form Type: S-1
Source: 0001213900-25-106802
Chunk: 89

Company: Safeguard Acquisition Corp.
Filing Date: 2025-11-06
Form: S-1
Chunk 89
---
 from the trust account. However, if we issue debt securities or otherwise incurs significant debt to banks or other lenders or the owners of a target, it could result in: •default and foreclosure on the assets of the post -businesscombination company if its operating revenues are insufficient to repay its debt obligations; •acceleration of the post -businesscombination company’s obligations to repay such indebtedness, even if it makes all principal and interest payments when due, if it breaches certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; •the post -businesscombination company’s immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand; 62 •the post -businesscombination company’s inability to obtain necessary additional financing if the debt security contains covenants restricting its ability to obtain such financing while the debt security is outstanding; •using a substantial portion of the post -businesscombination company’s cash flow to pay principal and interest on its debt, which will reduce the funds available for expenses, capital expenditures, acquisitions and other general corporate purposes; •limitations on the post -businesscombination company’s flexibility in planning for and reacting to changes in its business and in the industry in which it operates; •increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and •limitations on the post -businesscombination company’s ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of its strategy and other purposes and other disadvantages compared to its competitors who have less debt. We may only be able to complete one business combination with the proceeds of this offering and the sale of the private placement units, which will cause us to be solely dependent on a single business which may have a limited number of products or services. This lack of diversification may negatively impact our operations and profitability. The net proceeds from this offering and the sale of the private placement units will provide us with up to $193,650,000 (or $222,450,000 if the underwriters’ over -allotmentoption is exercised in full) that we may use to complete our initial business combination (after taking into account the $8,000,000, or $9,200,000 if the over -allotmentoption is exercised in full, of deferred underwriting commissions being held in the trust account and the estimated expenses of this offering). We may effectuate our initial business combination with a single target