Saturday, May 4th 2013

AMD Announces Commencement of Exchange Offer for its 7.50% Senior Notes

AMD (NYSE: AMD) announced today that it has commenced a registered exchange offer to exchange any and all of its outstanding 7.50% Senior Notes due 2022, which were issued in a private placement (the "Private Notes,") for an equal principal amount of new 7.50% Senior Notes due 2022 that have been registered under the Securities Act of 1933, as amended (the "Registered Notes").

The sole purpose of the exchange offer is to fulfill AMD's obligations with respect to the registration of the Private Notes. Pursuant to a registration rights agreement entered into by AMD in connection with the sale of the Private Notes, AMD agreed to file with the Securities and Exchange Commission a registration statement relating to the exchange offer pursuant to which AMD would offer to exchange any Private Notes tendered by the holders of those notes for Registered Notes containing terms that are substantially identical to the Private Notes.

Any Private Notes not tendered for exchange in the exchange offer will remain outstanding and continue to accrue interest, but will not retain any rights under the registration rights agreement except in limited circumstances.

The terms of the exchange offer are contained in the exchange offer prospectus dated May 3, 2013.

The exchange offer will expire at 5:00 p.m., New York City time, June 3, 2013, unless extended. Private Notes tendered pursuant to the exchange offer may be withdrawn at any time prior to the expiration date by following the procedures set forth in the exchange offer prospectus.

Requests for assistance or for copies of the exchange offer prospectus should be directed to the exchange agent: Wells Fargo Bank, National Association, 608 2nd Avenue South, 12th Floor, MAC CODE: N9303-121, Minneapolis, Minnesota 55402, Attention: Bondholder Communications, (800) 344-5128.

This press release shall not constitute an offer to sell or exchange any securities or a solicitation of an offer to buy or exchange any securities. The exchange offer will be made only by means of a written prospectus.
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13 Comments on AMD Announces Commencement of Exchange Offer for its 7.50% Senior Notes

#1
Mathragh
Can anyone with more business sense explain what exactly is happening here?

I never really heard of Senior Notes before, but it sounds like its some kind of debt they want to pay of early to reduce the amount of interest they have to pay over the long run?
Posted on Reply
#2
BiggieShady
by: Mathragh
Can anyone with more business sense explain what exactly is happening here?

I never really heard of Senior Notes before, but it sounds like its some kind of debt they want to pay of early to reduce the amount of interest they have to pay over the long run?
There is this definition that mentions "going under" several times ... I don't like it
Definition of 'Senior Debt'
Borrowed money that a company must repay first if it goes out of business. Companies have a number of options for obtaining financing, including bank loans and the issuance of bonds and stocks. Each type of financing has a different priority level in being repaid if the company decides to liquidate. If the company goes under, the holders of each type of financing have different levels of rights to the company's assets.
I'm no financial expert and I found that on investopedia linked in wikipedia article. I would also like to know more from someone who is more in touch.
Posted on Reply
#3
Aquinus
Resident Wat-man
IIRC AMD last quarter actually didn't post any losses. Though gains weren't incredibly substantial, I think AMD is re-arranging it's funds to offset any outstanding loans that they might have. Senior notes refer to loans held by AMD that have the greatest priority to be repaid over other loans. AMD's stock has been showing some signs of recovery, but we won't really know for a little while whether or not it is here to stay. If you bought when it was 2.40 a share, you're in business because it's value has increased by almost 50% in the last two weeks.

I don't think this changes a whole lot, AMD is still just as risky of an investment as it was before I read this.
Posted on Reply
#4
FrustratedGarrett
by: Aquinus
IIRC AMD last quarter actually didn't post any losses. Though gains weren't incredibly substantial, I think AMD is re-arranging it's funds to offset any outstanding loans that they might have. Senior notes refer to loans held by AMD that have the greatest priority to be repaid over other loans. AMD's stock has been showing some signs of recovery, but we won't really know for a little while whether or not it is here to stay. If you bought when it was 2.40 a share, you're in business because it's value has increased by almost 50% in the last two weeks.

I don't think this changes a whole lot, AMD is still just as risky of an investment as it was before I read this.
AMD is just trying too hard to not die. They've been losing money consistently every quarter for several years now. The Faildozer and their horrible management is to be blamed for that. Heck, optimized STAR cores do better than Bulldozer in every workload and they're smaller in size. They should've gone with the hyper-threading route, instead of splitting parts and leaving parts to "optimize efficiency", and ended up with a chip that's 300mm^2 and 50% higher power consumption than the Intel counterparts. A Piledriver core is close to half the performance of a Ivy Bridge core at the same operating frequency, and 2/3 the performance of a 10.5K core.

Overall, AMD has not been doing well, and they're not able to compete with Intel.
Posted on Reply
#5
Jorge
by: FrustratedGarrett
AMD is just trying too hard to not die. They've been losing money consistently every quarter for several years now. The Faildozer and their horrible management is to be blamed for that. Heck, optimized STAR cores do better than Bulldozer in every workload and they're smaller in size. They should've gone with the hyper-threading route, instead of splitting parts and leaving parts to "optimize efficiency", and ended up with a chip that's 300mm^2 and 50% higher power consumption than the Intel counterparts. A Piledriver core is close to half the performance of a Ivy Bridge core at the same operating frequency, and 2/3 the performance of a 10.5K core.

Overall, AMD has not been doing well, and they're not able to compete with Intel.
The ignorance espoused by the clueless and hateful is appalling and absurd.

According to the "exSPERTS" AMD has been going out of business for the past 40 years even when they actually produced Intel's CPUs for them. Yeah, that's right AMD produced Intel CPUs for them 40 years ago.

Now that we have cleared up the B.S. from the peanut gallery... AMD will continue to stay in Biz as long as they continue to deliver quality products that consumers desire. AMD's recent contract win for the next Xbox, PS and Wii is estimated to result in the sales of 5 million APUs. That in itself is a hugh chunk of Biz that neither Intel nor Nvidia got because AMD APUs are simply superior. Consumers win and the industry exploiters lose. BTW, Intel and Nvidia sales and market share continue to drop while AMDs continues to increase. The Times, they are a changin'.

As far as the article and senior notes are concerned AMD had agreed to exchange private notes for registered notes in accordance with their SEC agreement. This has absolutely NOTHING to do with AMD's financial status. The new and old shares have the exact same value. What it does is offer those who purchased senior notes under private issue, the opportunity to swap those shares for registered notes where they will will have voting rights, which will not be afforded to the private notes previously issued.

Hating doesn't change the facts but it exposes the ignorance of those who demonstrate such worthless endeavors.

http://online.wsj.com/article/PR-CO-20130503-912962.html
Posted on Reply
#6
Dave65
by: Jorge
The ignorance espoused by the clueless and hateful is appalling and absurd.

According to the "exSPERTS" AMD has been going out of business for the past 40 years even when they actually produced Intel's CPUs for them. Yeah, that's right AMD produced Intel CPUs for them 40 years ago.

Now that we have cleared up the B.S. from the peanut gallery... AMD will continue to stay in Biz as long as they continue to deliver quality products that consumers desire. AMD's recent contract win for the next Xbox, PS and Wii is estimated to result in the sales of 5 million APUs. That in itself is a hugh chunk of Biz that neither Intel nor Nvidia got because AMD APUs are simply superior. Consumers win and the industry exploiters lose. BTW, Intel and Nvidia sales and market share continue to drop while AMDs continues to increase. The Times, they are a changin'.

As far as the article and senior notes are concerned AMD had agreed to exchange private notes for registered notes in accordance with their SEC agreement. This has absolutely NOTHING to do with AMD's financial status. The new and old shares have the exact same value. What it does is offer those who purchased senior notes under private issue, the opportunity to swap those shares for registered notes where they will will have voting rights, which will not be afforded to the private notes previously issued.

Hating doesn't change the facts but it exposes the ignorance of those who demonstrate such worthless endeavors.

http://online.wsj.com/article/PR-CO-20130503-912962.html
I hope you are right,id hate to see AMD fold..
Posted on Reply
#7
TheLaughingMan
by: Jorge
The ignorance espoused by the clueless and hateful is appalling and absurd.

According to the "exSPERTS" AMD has been going out of business for the past 40 years even when they actually produced Intel's CPUs for them. Yeah, that's right AMD produced Intel CPUs for them 40 years ago.

Now that we have cleared up the B.S. from the peanut gallery... AMD will continue to stay in Biz as long as they continue to deliver quality products that consumers desire. AMD's recent contract win for the next Xbox, PS and Wii is estimated to result in the sales of 5 million APUs. That in itself is a hugh chunk of Biz that neither Intel nor Nvidia got because AMD APUs are simply superior. Consumers win and the industry exploiters lose. BTW, Intel and Nvidia sales and market share continue to drop while AMDs continues to increase. The Times, they are a changin'.

As far as the article and senior notes are concerned AMD had agreed to exchange private notes for registered notes in accordance with their SEC agreement. This has absolutely NOTHING to do with AMD's financial status. The new and old shares have the exact same value. What it does is offer those who purchased senior notes under private issue, the opportunity to swap those shares for registered notes where they will will have voting rights, which will not be afforded to the private notes previously issued.

Hating doesn't change the facts but it exposes the ignorance of those who demonstrate such worthless endeavors.

http://online.wsj.com/article/PR-CO-20130503-912962.html
Thank you.
Posted on Reply
#8
Hilux SSRG
by: Aquinus
IIRC AMD last quarter actually didn't post any losses. Though gains weren't incredibly substantial, I think AMD is re-arranging it's funds to offset any outstanding loans that they might have. Senior notes refer to loans held by AMD that have the greatest priority to be repaid over other loans. AMD's stock has been showing some signs of recovery, but we won't really know for a little while whether or not it is here to stay. If you bought when it was 2.40 a share, you're in business because it's value has increased by almost 50% in the last two weeks.

I don't think this changes a whole lot, AMD is still just as risky of an investment as it was before I read this.
I think this week''s rise in AMD stock price had more to do with an article floating around saying Intel should just gobble them up. But like you say, AMD is risky for sure but I'm rooting for them because I would hate no competition in the x86 market.
Posted on Reply
#9
vinibali
by: FrustratedGarrett
Heck, optimized STAR cores do better than Bulldozer in every workload and they're smaller in size.
I agree: AMD's Stars architecture is a great one! but 2of them isnt smaller than a Bulldozer/Piledriver/Steamroller etc module, and it performs even better! it was important to use these in the Trinity and the further platforms, cos in the APU-s you dont have too much room for the whole die. for significant GPU performance, u need the smallest CPU core as possible! feel free to check the die size :)
http://prohardver.hu/dl/cnt/2012-10/90356/picz/llano_trinity_die.png
Posted on Reply
#10
Aquinus
Resident Wat-man
by: Hilux SSRG
I think this week''s rise in AMD stock price had more to do with an article floating around saying Intel should just gobble them up. But like you say, AMD is risky for sure but I'm rooting for them because I would hate no competition in the x86 market.
For high performance x86 it would be a shame, but for low power I would take a VIA quad-core over an Atom any day.
Posted on Reply
#11
vinibali
by: Aquinus
For high performance x86 it would be a shame, but for low power I would take a VIA quad-core over an Atom any day.
for low-power AMD had another very efficient architectures, like Bobcat and Jaguar
Posted on Reply
#12
Aquinus
Resident Wat-man
by: vinibali
I agree: AMD's Stars architecture is a great one! but 2of them isnt smaller than a Bulldozer/Piledriver/Steamroller etc module, and it performs even better! it was important to use these in the Trinity and the further platforms, cos in the APU-s you dont have too much room for the whole die. for significant GPU performance, u need the smallest CPU core as possible! feel free to check the die size :)
http://prohardver.hu/dl/cnt/2012-10/90356/picz/llano_trinity_die.png
Intel has shown that a shorter pipeline is better. When you start increasing the length of the pipeline branch prediction gets a lot harder so I'm hoping we see some good CPUs from AMD using the Jaguar cores that are supposed to be used in the new Playstation. I really would like to see them push a smaller pipeline like Jaguar's but still manage to hold on to some of the modularity of BD and PD because for multithreaded workloads the module idea works pretty well if you want to optimize the performance of particular components. If you know the CPU is going to bottleneck on some things and other thing will be left unused, it's a smart idea to share components so you can optimize for the components that are needed more.

Think about it, the vast majority of calculations the CPU does is integer math, so it makes sense that AMD would opt for two integer cores over two floating point cores, but that does you little good when you miss-predict a branch and you have to redo the last so many CPU cycles over again ditching everything in the pipeline. That can get costly, even more so when you have a larger pipeline. So I think AMD needs to ditch the long pipeline and either has to find a way to get modules to run with a smaller pipeline or ditch modules all together because it's the single biggest thing holding them back unless they can pull a rabbit out of a hat when it comes to branch prediction. They seemed to iron out a lot of the cache issues in PD.

Edit:
by: vinibali
for low-power AMD had another very efficient architectures, like Bobcat and Jaguar
Yeah! I'm pretty excited about Jaguar. I've been wanting to convert my gateway to something a little less powerful.
Posted on Reply
#13
Mathragh
by: Aquinus

Yeah! I'm pretty excited about Jaguar. I've been wanting to convert my gateway to something a little less powerful.
Seeing as this thread has derailed anyway;

http://www.planet3dnow.de/cgi-bin/newspub/viewnews.cgi?id=1366210905

Shows jaguar ipc performance rivaling core2duo, with it being as fast as c2d in single threaded, and slightly faster in multi threaded performance.
So 8 of these in the PS4 and Xbox infinity would basically main a core2octa on die, lol.
Quite exited by that prospect aswell, however, I dont see these cores as a substitution for bulldozer cores, but rather, that they will converge/diverge, to a point at which they both share the same global make-up(some parts shared between cores), but with the successor of jaguar being tuned for lower power/lower performance, while bulldozer stays tuned for high power high performance.


On topic: still wondering what exactly the news value of this article is. Why is AMD exchanging these "shares", and if it isn't relevant, why post a news article about it?
Can't make heads of tails of it =D
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