Tempus AI, Inc. (NASDAQ: TEM) has announced its plan to offer $400 million aggregate principal amount of convertible senior notes due in 2030 in a private placement. There is also an over-allotment option for the initial purchasers to buy up to an additional $60 million aggregate principal amount of notes.
The notes, which will be general unsecured obligations of Tempus, will accrue interest payable semiannually in arrears and will mature on July 15, 2030, unless earlier converted, redeemed, or repurchased. The interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering.
Tempus plans to use the net proceeds from the offering to repay $274.7 million principal amount of its outstanding senior secured term loans, pay the cost of capped call transactions, and for general corporate purposes, including acquisitions or strategic investments in complementary businesses or technologies, working capital, operating expenses, capital expenditures, or repayment of additional indebtedness.
In connection with the pricing of the notes, Tempus expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or affiliates thereof and/or other financial institutions to cover the number of shares of Class A common stock initially underlying the notes.
The notes and any shares of Class A common stock issuable upon conversion of the notes have not been and will not be registered under the securities act, any state securities laws, or the securities laws of any other jurisdiction.
Tempus is a technology company leading the adoption of AI to advance precision medicine and patient care. With one of the world’s largest libraries of multimodal data, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care. Following these announcements, the company's shares moved 3.02%, and are now trading at a price of $60.97. For more information, read the company's full 8-K submission here.
