Tempus AI dips after boosted $650 mln convertible bond sale

Tempus AI

01/07/2025 11:12

** Shares of genetics testing firm Tempus AI TEM.O down 0.3% before the bell to $63.37 after co secures capital raise

** Chicago, Illinois-based firm, backed by SoftBank 9984.T, late Mon announced pricing of $650 mln 0.75% 5-yr convertible bonds

    ** Initial conversion price of $84.19 is 32.5% premium to stock's last close

    ** TEM shares fell 4.5% after co early Mon announced $400 mln offering

** Co plans to use net proceeds to repay $247.7 mln principal of its outstanding secured term loans, plus any unpaid premium and interest

** Also intends to use proceeds to pay ~$36 mln for capped calls, rest for general purposes including potential acquisitions or strategic investments, among other purposes

** Through Mon, TEM shares up 88% YTD giving them $11 bln market cap

    ** Of 12 analysts covering TEM, half rate "strong buy" or "buy", half rate "hold" and median PT is $65, LSEG data reflects

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))