Tempus AI falls on planned $400 mln convertible bond sale

Shares of genetics testing firm Tempus AI TEM.O down 3.3% premarket to $64.30 on capital raise plans

Chicago, Illinois-based firm announces private offering of $400 mln 5-yr convertible bonds (CBs)

It plans to use net proceeds to repay $247.7 mln principal of its outstanding secured term loans, plus any unpaid premium and interest

Also intends to use proceeds to pay for capped calls to offset potential dilution, and for general purposes including potential acquisitions or strategic investments, among other purposes

Co has $11.5 bln market cap through Fri close

Backed by Japan's SoftBank 9984.T, co IPOd last Jun at valuation north of $6 bln

TEM shares on Fri finished down 2.7% at $66.52, but up 97% YTD. Stock hit record intraday high of $91.45 in mid-Feb

Of 12 analysts covering TEM, recommendation breakdown is 6 "strong buy" or "buy", and 6 "hold" and median PT is $65, LSEG data reflects