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Tempus AI Prices $650 Million Upsized Senior Notes Offering

BY MT Newswires | CORPORATE | 07/01/25 04:40 AM EDT

04:40 AM EDT, 07/01/2025 (MT Newswires) -- Tempus AI (TEM) said Monday it has priced a private placement of $650 million of its 0.75% convertible senior unsecured notes due July 15, 2030.

The initial conversion rate is 11.8778 shares of class A common stock per $1,000 of notes, equivalent to an initial conversion price of about $84.19 per share.

The offering, upsized from $400 million, is set to close Thursday.

Initial purchasers have been granted a 13-day option to purchase up to an additional $100 million of notes.

Net proceeds from the offering will be used to repay $274.7 million of its outstanding senior secured term loans, as well as to pay the cost of certain capped call transactions and general corporate purposes.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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