Tuesday, August 7th 2012

AMD Announces Pricing of Private Offering of $500 Million of Senior Notes

AMD today announced that it has agreed to sell $500 million aggregate principal amount of its 7.50% Senior Notes due 2022 in a private offering. AMD intends to close the transaction on or around August 15, 2012. AMD estimates that the net proceeds from the issuance and sale of the senior notes will be approximately $491 million after deducting the initial purchasers’ discounts and estimated offering expenses.

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 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. 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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4 Comments on AMD Announces Pricing of Private Offering of $500 Million of Senior Notes

#1
Fourstaff
5.75% exchanged for 7.5%, AMD is getting shafted.
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#2
de.das.dude
Pro Indian Modder
someone translate to simpler english? will they be selling shares to private ppl?
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#3
Fourstaff
by: de.das.dude
someone translate to simpler english? will they be selling shares to private ppl?
They need to borrow money, and at the moment they are thinking of borrowing money from a select few people/banks/entities at the rate of 7.5% a year, full amount repayable sometime during 2022. This sucks because they are currently borrowing money at the rate of 5.75-6.00%
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