Tempus AI (TEM) Falters on $400-Million Debt Issue

Tempus AI, Inc. (NASDAQ:TEM) is one of the 10 Stocks Crash Hard on a Roaring Monday.

Tempus AI dropped for a second day on Monday, shedding 4.48 percent to close at $63.54 apiece following the announcement of a $400-million debt issuance.

In a statement, Tempus AI, Inc. (NASDAQ:TEM) said that it plans to raise the funds through a convertible senior notes issuance to qualified institutional buyers. The notes have a tenor of five years and will mature in July 2030.

Tempus AI, Inc. (NASDAQ:TEM) also granted an overallotment option of up to $60 million, which can be exercised within a 13-day period beginning on the date the notes are first issued.

The notes will be general unsecured obligations and will accrue interest payable semiannually in arrears unless earlier converted, redeemed, or repurchased.

Upon conversion, the company will either pay in cash or a combination of cash and shares for its Class A common shares.

Tempus AI, Inc. (NASDAQ:TEM) said proceeds from the offer will be used to repay $274.7 million worth of outstanding senior secured term loans, including any unpaid premium and interest, strategic acquisitions, and general corporate purposes, among others.

Tempus AI (TEM) Falters on $400-Million Debt Issue

A technician in a lab coat standing in a cleanroom with energy storage systems in the background.

If the buyers exercise their overallotment option, the company said proceeds from the overallotment will be used to purchase additional notes and for other general corporate purposes.

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Disclosure: None. This article is originally published at Insider Monkey.