Tempus AI falls on planned $400 mln convertible bond sale
30/06/2025 12:37
** Shares of genetics testing firm Tempus AI TEM.O down 3.3% premarket to $64.30 on capital raise plans
** Chicago, Illinois-based firm announces private offering of $400 mln 5-yr convertible bonds (CBs)
** It 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 for capped calls to offset potential dilution, and for general purposes including potential acquisitions or strategic investments, among other purposes
** Co has $11.5 bln market cap through Fri close
** Backed by Japan's SoftBank 9984.T, co IPOd last Jun at valuation north of $6 bln
** TEM shares on Fri finished down 2.7% at $66.52, but up 97% YTD. Stock hit record intraday high of $91.45 in mid-Feb
** Of 12 analysts covering TEM, recommendation breakdown is 6 "strong buy" or "buy", and 6 "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))