<SEC-DOCUMENT>0001193125-20-307388.txt : 20210107
<SEC-HEADER>0001193125-20-307388.hdr.sgml : 20210107
<ACCEPTANCE-DATETIME>20201201172850
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-20-307388
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20201201

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Pivotal Investment Corp II
		CENTRAL INDEX KEY:			0001772720
		STANDARD INDUSTRIAL CLASSIFICATION:	MOTOR VEHICLE PARTS & ACCESSORIES [3714]
		IRS NUMBER:				834109918
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		145 NEWTON STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02135
		BUSINESS PHONE:		6177180329

	MAIL ADDRESS:	
		STREET 1:		145 NEWTON STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02135

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	Pivotal Investment Corp II
		DATE OF NAME CHANGE:	20190403
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<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Graubard Miller</B></P> <P STYLE="font-size:12pt; margin-top:0pt; margin-bottom:0pt" align="left">&nbsp;</P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">The Chrysler Building</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">405 Lexington
Avenue</P> <P STYLE="margin-top:0pt; margin-bottom:1pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">N<SMALL>EW</SMALL> Y<SMALL>ORK</SMALL>, N.Y. 10174-1101</P></TD>
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<TD VALIGN="top">facsimile</TD>
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<TD VALIGN="bottom" ALIGN="center">direct dial number</TD></TR>
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<TD VALIGN="bottom"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; margin-left:1.00em; text-indent:-1.00em; font-size:10pt; font-family:Times New Roman">(212) <FONT STYLE="white-space:nowrap">818-8881</FONT></P></TD>
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<TD VALIGN="top" ALIGN="center">(212) <FONT STYLE="white-space:nowrap">818-8638</FONT></TD></TR>
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<TD VALIGN="bottom">&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;&nbsp;</TD>
<TD VALIGN="bottom">&nbsp;</TD>
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<TD VALIGN="bottom" ALIGN="center">email address</TD></TR>
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<TD VALIGN="bottom" ALIGN="center">jgallant@graubard.com</TD></TR>
</TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">December 1, 2020 </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Corporation Finance </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Office of Manufacturing </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, D.C. 20549 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:9%; font-size:10pt; font-family:Times New Roman">Re:
<B>&nbsp;&nbsp;&nbsp;Pivotal Investment Corp. II </B> </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Amendment No.&nbsp;1 to Registration Statement on Form <FONT
STYLE="white-space:nowrap">S-4</FONT> </B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>Filed November&nbsp;12, 2020 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:9%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><U>File <FONT STYLE="white-space:nowrap">No.&nbsp;333-249248</FONT>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ladies
and Gentlemen: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On behalf of Pivotal Investment Corporation II (&#147;Pivotal&#148;), we respond as follows to the Staff&#146;s comment
letter, dated November&nbsp;25, 2020, relating to the above-captioned amended Registration Statement on Form <FONT STYLE="white-space:nowrap">S-4</FONT> (&#147;Registration Statement&#148;). Captions and page references herein correspond to those
set forth in the amended filing of the Registration Statement. Capitalized terms used but not defined in this letter have the meanings ascribed to them in the Registration Statement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">Please note that for the Staff&#146;s convenience, we have recited each of the Staff&#146;s comments and provided Pivotal&#146;s response to
each comment immediately thereafter. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Amendment No.&nbsp;1 to Registration Statement on Form <FONT STYLE="white-space:nowrap">S-4</FONT> filed
November&nbsp;12, 2020 </U></I></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Sales Restrictions, page 78 </U></I></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B><I>1.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>We note your response to prior comment 11. Please clarify the number of shares to be held by the
&#147;certain&#148; stockholders who have agreed to the restrictions discussed in your disclosure. </I></B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">In response
to the Staff&#146;s comment, Pivotal has updated the disclosure under the subheading &#147;Commitment of Current Stockholders&#148; on page 87 of the Registration Statement as requested to specify the number of shares to be held by XL
securityholders who have agreed to be subject to the <FONT STYLE="white-space:nowrap">Lock-Up</FONT> Agreement. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 1, 2020 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 2
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Material U.S. Federal Income Tax Consequences of the Merger, page 92 </U></I></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B><I>2.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>We note that you intend for the transaction to qualify as a reorganization under Section&nbsp;368(a) of
the Code, please revise your disclosures here to more clearly state counsel&#146;s tax opinion on whether the transaction will qualify as a reorganization. Also, state in your disclosure here that the discussion is the opinion of tax counsel.
Whenever there is significant doubt about the tax consequences of the transaction, it is permissible for the tax opinion to use &#147;should&#148; rather than &#147;will,&#148; but counsel providing the opinion must explain why it cannot give a
&#147;will&#148; opinion and describe the degree of uncertainty in the opinion. Please refer to Sections III.B and C of Staff Legal Bulletin 19. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We have revised the disclosure on page 94 of the Registration Statement as requested. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Notes to Unaudited Pro Forma Condensed Combined Financial Statements </U></I></B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>III. Pro Forma Adjustments, page 119 </U></I></B></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B><I>3.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>We note your response to our prior comment 15; however, we do not believe your response fully addresses
our concern. As previously requested, please explain to us why the adjustment to remove the loss from debt extinguishment is appropriate and meets the requirements for pro forma presentation under Article 11 of Regulation <FONT
STYLE="white-space:nowrap">S-X.</FONT> In this regard, we note from disclosures provided elsewhere in the filing the loss from extinguishment of debt was due to extensions of debt past original maturity recognized during the nine months ended
September&nbsp;30, 2020. Specifically, please tell us how the adjustment to eliminate the loss from the pro forma statements of operations for the nine months ended September&nbsp;30, 2020 is directly attributable to the transaction and is expected
to have a continuing impact. The loss from extinguishment of debt appears to represent an infrequent or nonrecurring item included in the underlying historical financial statements that are not directly affected by the transaction which should not
be eliminated. </I></B></P></TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We wish to advise the Staff that XL has re-evaluated this matter and has concluded that the loss
from extinguishment of debt is not directly affected by the Business Combination. As such, we have revised the disclosure in the Registration Statement to remove the adjustment to add back the loss from extinguishment of debt within the Unaudited
Pro Forma Condensed Statements of Operations for Nine Months Ended September&nbsp;30, 2020. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">December 1, 2020 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Management&#146;s Discussion and Analysis </U></I></B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Results of Operations </U></I></B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Comparison
of Nine Months Ended September&nbsp;30, 2020 and 2019 </U></I></B></P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I><U>Other (Income) Expense, Net, page 173 </U></I></B></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B><I>4.</I></B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B><I>We note from your disclosure you recognized loss on extinguishment of debt of $1.04&nbsp;million for the
nine months ended September&nbsp;30, 2020 due to extensions of debt past original maturity. Please explain to us in greater detail the nature, facts and circumstances surrounding the recognition of loss from extinguishment of debt and your
consideration of ASC <FONT STYLE="white-space:nowrap">470-50</FONT> in determining the appropriate accounting treatment as it is not apparent from the disclosures provided in the filing. </I></B></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">We have expanded the disclosure in the Registration Statement, in both the footnotes to the Condensed Consolidated Financial Statements for
the Nine Months Ended September&nbsp;30, 2020 of XL and within Management&#146;s Discussion and Analysis - Results of Operations of XL for the Nine Months Ended September&nbsp;30, 2020. The expanded disclosure provides greater detail of the nature,
facts and circumstances surrounding the recognition of loss from extinguishment of debt, including disclosure of the key measurements made pursuant to ASC 470-50 in the determination of the appropriate accounting treatment. We have added the
following expanded disclosure: &#147;During the nine months ended September&nbsp;30, 2020, the Company incurred a loss on extinguishment of $1,038,000 in connection with the amendment of $10,000,000 in face value of convertible notes. Specifically,
during February of 2020, the Company entered into amendments of the convertible loan agreements with these note holders to extend the maturities to February 2021. The Company computed the discounted cash flows from these convertible notes as of the
date of the amendment, both before and after the amendment. The Company determined that there was a greater than 10% change in the present value of these cash flows, and as such, the amendment qualified as an extinguishment. Pursuant to the relevant
accounting guidance, the Company recorded a loss on extinguishment of debt of $1,038,000.&#148; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">************* </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If you have any questions, please do not hesitate to contact me at the above telephone and facsimile numbers. </P>
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<TD VALIGN="top">Sincerely,</TD></TR>
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<TD VALIGN="top">/s/ Jeffrey M. Gallant</TD></TR>
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<TD VALIGN="top">Jeffrey M. Gallant</TD></TR>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">Mr.&nbsp;Jonathan&nbsp;J. Ledecky </P></TD></TR></TABLE>
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