Company: PAII-WT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110840
Chunk: 87

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 87
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 lenders or the owners of a target, it could result in:

➤default and foreclosure on our assets if our operating revenues
after an initial business combination are insufficient to repay our debt obligations;

➤acceleration of our obligations to repay the indebtedness
even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial
ratios or reserves without a waiver or renegotiation of that covenant;

➤our immediate payment of all principal and accrued interest,
if any, if the debt security is payable on demand;

➤our inability to obtain necessary additional financing if
the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding;

➤using a substantial portion of our cash flow to pay principal
and interest on our debt, which will reduce the funds available for expenses, capital expenditures, acquisitions and other general corporate
purposes;

➤limitations on our flexibility in planning for and reacting
to changes in our business and in the industry in which we operate;

➤increased vulnerability to adverse changes in general economic,
industry and competitive conditions and adverse changes in government regulation; and

➤limitations on our ability to borrow additional amounts for
expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages
compared to our competitors who have less debt.

The registration statement for our initial public offering was declared
effective on July 16, 2025. On July 18, 2025, we consummated the public offering of 20,041,150 units (the “Units”), at $10.00
per Unit, generating gross proceeds of $200,411,500, and incurring transaction costs of approximately $12.8 million, consisting of $2.6
million of upfront underwriting fees, approximately $9.4 million of deferred underwriting fees and approximately $740,000 of other offering
costs.

Simultaneously with the consummation of the initial public offering,
we consummated the sale of 5,050,000 private placement warrants (the “Private Placement Warrants”) at a price of $1.00 per
Private Placement Warrant in a private placement to our sponsor, generating gross proceeds of $5,050,000 (the “Private Placement”).

On July 24, 2025, the underwriters of the initial public offering (the
“Underwriters”) partially exercised their over-allot