Tempus AI said it plans to raise $350.0 million through convertible senior notes due 2032, with an additional $52.5 million available to initial purchasers if they exercise their option. The company said it expects to use the proceeds to repay in full $307.7 million of outstanding loans under its senior secured credit facilities, plus accrued interest and fees.
The financing would replace secured debt with convertible notes and is aimed at lowering interest expense. Tempus also said part of the proceeds will go toward capped call transactions, which are intended to reduce potential dilution if the notes are converted.
The notes will mature on May 15, 2032, unless converted, redeemed or repurchased earlier. They will be unsecured and pay interest semiannually, with the rate and conversion terms to be set at pricing.
If the additional $52.5 million option is exercised, Tempus said it will use part of those proceeds for extra capped call transactions and the rest for general corporate purposes. Those uses may include acquisitions, strategic investments, working capital, operating expenses, capital expenditures and repayment of additional debt. Today the company's shares have moved -2.51% to a price of $45.77. If you want to know more, read the company's complete 8-K report here.
