Monday, August 6th 2012

AMD Announces Private Offering of $300 Million of Senior Notes

Advanced Micro Devices, Inc. (NYSE: AMD) today announced that it intends to commence a private offering, subject to market and other conditions, of $300 million aggregate principal amount of senior notes due 2022. AMD intends to use the net proceeds for general corporate purposes and working capital, which may include the following: (i) the repayment or repurchase of some or all of its outstanding 5.75% Convertible Senior Notes due August 2012, (ii) repayment or repurchase of some or all of its outstanding 6.00% Convertible Senior Notes due 2015, (iii) cash payments to GLOBALFOUNDRIES related to the 28nm product limited waiver of exclusivity, or (iv) potential strategic transactions.

The new senior notes have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws, and will be offered only to qualified institutional buyers in reliance on Rule 144A and in offshore transactions pursuant to Regulation S under the Securities Act of 1933, as amended. Unless so registered, the new senior notes may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
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8 Comments on AMD Announces Private Offering of $300 Million of Senior Notes

#1
TheMailMan78
Banstick Dummy
I got 5 bucks on it! Anyone else with me?
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#2
Fourstaff
by: TheMailMan78
I got 5 bucks on it! Anyone else with me?
Which part of "private offering" do you not get? On top of that its rigged so that they pay as little tax as possible, something I approve.
Posted on Reply
#3
n-ster
by: Fourstaff
Which part of "private offering" do you not get? On top of that its rigged so that they pay as little tax as possible, something I approve.
twas a joke........
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#4
NC37
Paying off debts by adding on more debts...AMD...if it doesn't work for governments around the world why the heck do you think it's gonna work for you? /facepalm
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#5
hat
Maximum Overclocker
Looks like they're hoping to dump some money into their company and use it to make better products, then pay it off later. Probably won't work, though.
Posted on Reply
#6
Fx
by: NC37
Paying off debts by adding on more debts...AMD...if it doesn't work for governments around the world why the heck do you think it's gonna work for you? /facepalm
LOL- that is so true. Virtually every country is printing money as fast as it can; they are only digging a deeper hole while punishing its People with more burden.

Times like these aren't very prosperous, which doesn't provide a very supportive environment for AMD to make a strong comeback in processors.
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#7
Kreij
Senior Monkey Moderator
by: hat
Looks like they're hoping to dump some money into their company and use it to make better products, then pay it off later. Probably won't work, though.
No, it looks like they are hoping to get lower interest debt to pay off higher interest debt.
This can work in their favor. It's like taking out a low interest home equity loan to pay off a high interest credit card.
In the end, though, you still have to make enough money to pay off the debt.
Posted on Reply
#8
Xzibit
$300 million is almost what they bought Seamicro for $334 earlier this year. If I remember correctly they had to pay under $300 in cash and the rest in stock.

Maybe the accountants are doing their work. If they can lower debt why not.
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