Tempo Automation and ACE Convergence Acquisition have secured $200 million in covertible notes to support their proposed merger.
The notes consist of a $175 million investment from funds managed by Oaktree Capital Management and $25 million from an investment partner of ACE as a replacement for a previously announced investment, bringing the total to $175 million of new financing. The notes are anticipated to fund concurrently with the closing of the merger, if the SPAC’s stockholders approve the deal.
Tempo and ACE in a news release said they expect the transaction to close in Q1 or Q2 2022. The $175 million of new financing will replace $54 million in net proceeds from a senior term debt facility. Including this new financing from Oaktree and previously announced financing from ACE’s affiliates (which is being replaced by an investment from a partner of ACE), the company will have more than $500 million in proceeds, assuming no redemptions.
As announced in October, the transaction is expected to provide $391 million in gross cash proceeds to the company.
Tempo is an electronics manufacturer, specializing in automated manufacturing of printed circuit boards. Read more.
