Tempus AI (TEM) drops 4.48% after announcing $400-million debt issuance.

Tempus AI, Inc. (NASDAQ:TEM) dropped 4.48% on Monday, closing at $63.54 after announcing a $400-million debt issuance. The company plans to raise funds through a convertible senior notes issuance to qualified institutional buyers, with the option to grant up to $60 million within a 13-day period.

The notes will be general unsecured obligations with interest payable semiannually, convertible to cash or a combination of cash and shares for Class A common shares. Proceeds from the offer will be used to repay outstanding loans, strategic acquisitions, and general corporate purposes.

If buyers exercise their overallotment option, proceeds will be used to purchase additional notes and for general corporate purposes. While TEM shows investment potential, some AI stocks may offer higher returns with limited downside risk. For a cheap AI stock benefiting from Trump tariffs and onshoring, see our free report.

Read more at Yahoo Finance: Tempus AI (TEM) Falters on $400-Million Debt Issue