Tempus AI rises after boosted $400 mln convertible bond offering

Tempus AI

08/05/2026 13:05

** AI-enabled precision medicine firm Tempus AI TEM.O shares up 1.2% before the bell to $50.06 after securing above-target raise

** Chicago, Illinois-based firm early Fri announced pricing a private offering of $400 mln 0% 6-yr convertible bonds

** Offering size increased from $350 mln; initial conversion price of $69.26 is 40% premium to stock's last sale of $49.47 on Thurs

** TEM shares finished down 7.5% on Thurs after co launched the offering to fully repay $307.7 mln of outstanding loans under credit facilities, plus accrued and unpaid interest and fees

** It also expects to use $27.2 mln to fund capped call transactions and use some proceeds for general purposes including potential acquisitions or strategic investments

** Initial cap price of $98.94 represents 100% premium to stock's last close

** Through Thurs, TEM shares down 16% YTD

** Avg rating of 19 analysts is "buy"; median PT $75, per LSEG data

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

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