ACE Convergence Acquisition Corp. (NASDAQ:ACEV) has secured its combination with electronics manufacturer Tempo Automation with $200 million in convertible notes financing announced this morning.
This new money will replace $54 million originally destined for the post-combination company in the form of a senior debt facility and is made up of $175 million from Oaktree Capital Management and $25 million from an ACE Convergence affiliate.
This is still not cheap capital, however, as the notes are due in 2025 and hold a 13% interest rate per annum, to be paid semi-annually in a split of 8% cash and 5% in-kind. But, together with the $82 million PIPE, $25 million in convertible notes and a backstop of up to $95 million initially announced with the transaction, this brings the deal’s secured financing to $323 million.
This will cover the transaction’s $320 million minimum cash condition, removing any doubt of the deal’s completion as shareholders make their decisions at their extension redemption deadline set for today. ACE Convergence shareholders are then set to extend their completion deadline to July 13 at a shareholder vote January 21.
ACE Convergence initially announced its $936 million combination with Tempo on October 14. San Francisco-based Tempo provides outsourced digital manufacturing services for electronics and other circuitry applications.
While this work runs a wide gamut, components manufactured by Tempo are expected to head to the Moon in the first quarter of 2022 as a part of a the lander that will deliver five NASA payloads to the surface.
Terms Tracker for the Week Ending April 25, 2025 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Everybody’s back in the pool. Two more SPACs filed this week while four others priced their IPOs. Additionally five SPACs announced their combinations, breaking the...
At the SPAC of Dawn After a cheery string of good news indicators, futures remain green heading into the final trading session of the week. The final reading for consumer sentiments is to come at about 10 am, which will hopefully match the market’s recent mood. There is some time delay on this indicator, however,...
Inflection Point Acquisition Corp. III (NASDAQ:IPCXU) announced the pricing of its $220 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “IPCXU”, Friday, April 25, 2025. The new SPAC aims to combine with a disruptive technology company in North America or Europe that is customer-focused and adaptable to...
Crane Harbor Acquisition Corp. (NASDAQ:CHACU) announced the pricing of its $200 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “CHACU”, Friday, April 25, 2025. The Company’s primary focus will be to identify companies in the technology, real assets, and energy sectors. Crane Harbor’s management team is led...
Flag Ship Acquisition Corporation (NASDAQ:FSHP) has entered into a definitive agreement to combine with Great Future under so far undisclosed terms. Transaction Overview Flag Ship has about $71.6 million in its current trust and has until September 20, 2025 to complete a business combination but may extend up to nine times for one month each...