ACE Convergence (ACEV) Secures $100M for Tempo Automation Deal
by Marlena Haddad on 2022-03-17 at 5:31pm

ACE Convergence Acquisition Corp. (NASDAQ:ACEV) announced that it has secured up to $100 million in committed equity financing for its combination with electronics manufacturer Tempo Automation.

The new money comes from an affiliate of Cantor Fitzgerald, and will purchase up to an aggregate of $100 million of Tempo’s common stock from time to time post-merger. This facility allows Tempo the ability to raise additional capital in the future.

Earlier this year, ACE Convergence secured $200 million in convertible notes financing, replacing $54 million that was originally destined for the post-combination company in the form of a senior debt facility.  The convertible notes are made up of $175 million from Oaktree Capital Management and $25 million from an ACE Convergence affiliate.

Although 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, it helped cover the transaction’s $320 million minimum cash condition, removing any doubt of the deal’s completion.

The SPAC’s share price has been slowly grinding its way up and closed today at $10.04. Upon closing of the deal, the combined entity is expected to be renamed “Tempo Automation Holdings, Inc.” and shares of its common stock are expected to trade on the Nasdaq under the ticker symbol “TMPO”.

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.

 

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