Tuesday, November 12th 2013

AMD Announces Closing of $500 Million Secured Revolving Line of Credit

AMD today announced that the company and its subsidiary, AMD International Sales & Service, Ltd. (collectively, the "Borrowers"), have entered into a loan and security agreement for a principal amount up to $500 million (the "Secured Revolving Line of Credit") with a group of lenders and Bank of America, N.A. acting as agent for the lenders. The proceeds of the Secured Revolving Line of Credit may be used for general corporate purposes, including working capital needs. Availability under the Secured Revolving Line of Credit is limited to a borrowing base of 85% of eligible accounts receivable, less certain reserves. The obligations under the Secured Revolving Line of Credit are secured by the Borrowers' accounts receivable and inventory. The five-year Secured Revolving Line of Credit will mature on November 12, 2018. No drawings were made under the Secured Revolving Line of Credit on the closing date of the loan agreement.

"We have made significant progress during the last year strengthening our capital structure to support our strategic growth plans," said Devinder Kumar, AMD senior vice president and chief financial officer. "We expect to end the fourth quarter of 2013 with cash, cash equivalents and marketable securities, including long-term marketable securities, balances of approximately $1.2 billion and remain committed to maintaining ongoing balances of approximately $1.1 billion, our target optimal level. This secured revolving line of credit provides AMD with greater financial flexibility as we continue transforming AMD for growth across a more diverse set of markets."
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35 Comments on AMD Announces Closing of $500 Million Secured Revolving Line of Credit

#1
Mistral
...Bank of America...
Should we be worried?
Posted on Reply
#2
RCoon
Gaming Moderator
by: Mistral
Should we be worried?
Money literally means nothing to countries. It's just numbers. There is not enough money in the entire world to pay off the world's debts. $17 trillion debt? No problem, lets lend $500 million of imaginary money to AMD.
Posted on Reply
#3
Dent1
by: RCoon
Money literally means nothing to countries. It's just numbers. There is not enough money in the entire world to pay off the world's debts. $17 trillion debt? No problem, lets lend $500 million of imaginary money to AMD.
That is primarily the USA that prints money daily, borrows imaginary money without thought. Black budgets that are confidential to their own citizens. It isn't a common practise for us in the UK or the rest of the world unless its a bodged attempt to repair the economy.
Posted on Reply
#4
RCoon
Gaming Moderator
by: Dent1
That is primarily the USA that prints money daily, borrows imaginary money without thought. Black budgets that are confidential to their own citizens. It isn't a common practise for us in the UK or the rest of the world.
Kindof is. How else did the economy of 90% of the EU's economies get borked? XD the UK printed more money last year, so we're no better, we're just a smaller country so the figures don't look so bad.
Posted on Reply
#5
Dent1
by: RCoon
Kindof is. How else did the economy of 90% of the EU's economies get borked? XD the UK printed more money last year, so we're no better, we're just a smaller country so the figures don't look so bad.
Most of the EU is fine. Just one or two rogue countries like Cyprus that's suffering. That is because they have a long traditional of not paying tax. On the whole EU is fine and growing slowly.

We are much better than USA's economy because our spending is transparent, as with most EU countries.

USA have put into law that certain money can legally go unaccounted for if it relates to national security. So citizens can't even complain.

In regards to this AMD story, I can see why they were allowed to borrow this money. AMD employees in the tens of thousands, maybe hundreds of thousands. Nobody wants to add to USAs unemployment rate or the foreign unemployment rate of India and China where AMD have many employees. AMD is finally do well financially so the stimulus worked.
Posted on Reply
#6
Jorge
Unfortunately most of Europe and Asia are economically in the same situation as the U.S. with massive unemployment and no means to lower it. Some Euro countries have massive debt that they can't manage so the EU is trying to resolve these issues but it's not a good situation for anyone. Both Asia and Europe are dependent on U.S. consumerism of their products and that has dropped as a result of our stalled economy that shows no real signs of real recovery for another 5 years or more.

As far as AMD is concerned they have definitely "turned the corner" to a better financial future. Kaveri, HUMA and HSA have created a historic and monumental change in the PC landscape that will surprise and please all. The more significant story however is that AMD has shown to industry leaders what this new tech can do and all of the big industry players are on board with the exception of AMD's competition Intel and Nvida who are going to be left out in the cold as the PC industry moves forward without them.

It's great to see AMD finally getting back on track and delivering superior performance products at fair prices unlike companies who do all that they can to exploit consumers.
Posted on Reply
#7
The Von Matrices
I'm not sure if this is misunderstood but Bank of America is not the U.S. government; it is a private company. The U.S. government has nothing to do with this loan; it was a private transaction where Bank of America saw a profit opportunity. This is a secured loan, meaning that if AMD goes bankrupt then Bank of America can claim its assets to repay the loan. In practice it's no different than an individual getting a home or car loan.
Posted on Reply
#8
de.das.dude
Pro Indian Modder
money confuses me. i miss the barter days.

someone explain to me how does a money really get its value?
Posted on Reply
#9
RCoon
Gaming Moderator
by: de.das.dude
money confuses me. i miss the barter days.

someone explain to me how does a money really get its value?
The wealth and worth of a nation's money is based on the amount of gold they control/own. I don't think that's the case anymore though.
For example:

US has 10 tonnes of gold
UK has 5 tonnes of gold

The US has 10 printed dollars, and the UK has 10 printed pounds. The UK's pounds are worth half of the US's dollars because each pound is representing less gold than the dollar. 1 dollar is representing 1 tonne of gold, while 1 pound is representing half a tonne of gold.
However, if the US then had 20 printed dollars, they would be worth the same as a pound, as each dollar would then be representing half a tonne of gold.
Posted on Reply
#10
Dent1
by: Jorge
Unfortunately most of Europe and Asia are economically in the same situation as the U.S. with massive unemployment and no means to lower it. Some Euro countries have massive debt that they can't manage so the EU is trying to resolve these issues but it's not a good situation for anyone..
I agree some EU countries are completely in the toilet. But its the minority.

The unemployment issue at least in the UK is more to do with job creation. We have one of the highest concentrate of degree holding young people in a decade but they have no jobs or are doing low paid jobs. So the government has to support them via benefits or subsidised their income. Rising cost of living in the UK raising above wages means the few employed and qualified young people will still need government assistance. This is the main drain on our economy.



by: Jorge

Both Asia and Europe are dependent on U.S. consumerism of their products and that has dropped as a result of our stalled economy that shows no real signs of real recovery for another 5 years or more.
Asia does very little importation. Most of their GDP is from exporting to the outside world. USA, Europe and the rest of the world rely on Asia to manufacture those consumerisms.

I agree overall there has been little recovery in a decade, its definitely increasing slowly but at a rate which is more steady. I guess anything that isn't a decline is a good sign.


by: Jorge


As far as AMD is concerned they have definitely "turned the corner" to a better financial future. Kaveri, HUMA and HSA have created a historic and monumental change in the PC landscape that will surprise and please all. The more significant story however is that AMD has shown to industry leaders what this new tech can do and all of the big industry players are on board with the exception of AMD's competition Intel and Nvida who are going to be left out in the cold as the PC industry moves forward without them.

It's great to see AMD finally getting back on track and delivering superior performance products at fair prices unlike companies who do all that they can to exploit consumers.
I agree, at one point I thought AMD was going to fail. They have came leaps and bounds over the last few years.
Posted on Reply
#11
Frick
Fishfaced Nincompoop
by: RCoon
The wealth and worth of a nation's money is based on the amount of gold they control/own. I don't think that's the case anymore though.
The gold standard is old and way out. Afaik few countries uses it these days.

From what I understand it's basicly a promise that a certain amount of money is that much money. Then it gets complicated with inflation, currency trading and why a nation has a certain value and how it ties to the currency... It's really rather complicated and that's the reason the top dog finance guys are stinking rich.
Posted on Reply
#12
Dent1
by: de.das.dude
money confuses me. i miss the barter days.

someone explain to me how does a money really get its value?
Youtube: XcGh1Dex4Yo


RCoon, example is how it works in theory but its way more complicated than that. A lot of it is guesswork and assigning money virtually due to virtual money transactions . We don't really deal with physical assets (gold) day to day anymore, everything is digital.

Everyone watch the documentary. Watched it twice in the past and its still confusing. I have a real gap in my knowledge in this area.
Posted on Reply
#13
Frick
Fishfaced Nincompoop
by: Dent1

Everyone watch the documentary. Watched it twice in the past and its still confusing. I have a real gap in my knowledge in this area.
You and every single person without a lot of doctorates in economy, a natural talent for economy and total insight. :laugh:
Posted on Reply
#14
RCoon
Gaming Moderator
by: Frick
Afaik few countries uses it these days.
by: Dent1
RCoon, example is how it works in theory but its way more complicated than that. A lot of it is guesswork and assigning money virtually due to virtual money transactions . We don't really deal with physical assets (gold) day to day anymore, everything is digital.
From what I remember from Economy, most countries abandoned the gold thing at least 2 decades ago, most notably in fact was Romania, who in the late 80's was the only country with literally ZERO debt in the whole of Europe. Then when the economy figures changed, and the way inflation and actual worth and wealth of countries were "guessed", they had accumalated 250 million in debt within a short few years.
Posted on Reply
#15
repman244
Offtopic but I don't care....
People should stop with the whole EU, USA, Asia comparisons and saying who's the worst and who's the best.
There is no such thing anymore because all three of us rely on each other. So if there are problems in the EU there will be problems in the USA and in Asia, it's all connected and simply saying you guys are the worst is ridiculous.
The big corporations/governments did/do very very dirty things everywhere so you aren't doing any favours to yourself or to your country when you're saying that the other one is worse than you when in fact by saying that you're backing up the shady things that go on in your own country.


Back on topic: if the said bank is a private bank does it need the government permission for really really high amounts of money to lend? I'm not sure how the system works over there...
Posted on Reply
#16
FordGT90Concept
"I go fast!1!11!1!"
by: The Von Matrices
I'm not sure if this is misunderstood but Bank of America is not the U.S. government; it is a private company. The U.S. government has nothing to do with this loan; it was a private transaction where Bank of America saw a profit opportunity. This is a secured loan, meaning that if AMD goes bankrupt then Bank of America can claim its assets to repay the loan. In practice it's no different than an individual getting a home or car loan.
Fun fact: Bank of America was originally Bank of Italy. Bank of Italy made its fortune in the aftermath of the San Francisco fire following the 1906 earthquake. Bank of Italy was the first bank to start lending money to people (from the back of a horse-drawn carriage, as the legend goes) so people could start rebuilding. Bank of Italy merged with a smaller bank called Bank of America in 1928. Bank of Italy took Bank of America's name in 1930.


The Federal Reserve System is the USA's federal/central bank.
Posted on Reply
#17
DaedalusHelios
by: RCoon
The wealth and worth of a nation's money is based on the amount of gold they control/own. I don't think that's the case anymore though.
For example:

US has 10 tonnes of gold
UK has 5 tonnes of gold

The US has 10 printed dollars, and the UK has 10 printed pounds. The UK's pounds are worth half of the US's dollars because each pound is representing less gold than the dollar. 1 dollar is representing 1 tonne of gold, while 1 pound is representing half a tonne of gold.
However, if the US then had 20 printed dollars, they would be worth the same as a pound, as each dollar would then be representing half a tonne of gold.
We are no longer on the gold standard. Welcome to 1933! :laugh:
Posted on Reply
#18
FordGT90Concept
"I go fast!1!11!1!"
by: repman244
Back on topic: if the said bank is a private bank does it need the government permission for really really high amounts of money to lend? I'm not sure how the system works over there...
Government has no control over the private banks beyond regulation. It is entirely up to the bank whether or not to issue a loan. There was regulations put in place following the 2007 collapse that may have muddied the waters but ultimately, it is still up to the bank because it is the bank's money.

$500 million is a lot of money but it is far from the biggest loan ever issued.
Posted on Reply
#19
Steevo
by: RCoon
The wealth and worth of a nation's money is based on the amount of gold they control/own. I don't think that's the case anymore though.
For example:

US has 10 tonnes of gold
UK has 5 tonnes of gold

The US has 10 printed dollars, and the UK has 10 printed pounds. The UK's pounds are worth half of the US's dollars because each pound is representing less gold than the dollar. 1 dollar is representing 1 tonne of gold, while 1 pound is representing half a tonne of gold.
However, if the US then had 20 printed dollars, they would be worth the same as a pound, as each dollar would then be representing half a tonne of gold.
The gold standard no longer exists.


Now its based on the credit worthy dollar and political/military power of the US.

Europe is in the same boat as the US in terms of debt and finance, a few countries (same as some of our states) float the countries like Greece and Italy ( not the same as states in the south where hillbillies and racist republicans live) that can't afford to make it due to trade differences.

Sure would be nice if we had a global government that used the highest producing areas to make sure the whole of humanity was fed and taken care of and allowed people to pursue their dream jobs instead of us all slaving for the top 1% to shit down fractions of their worth and then blame us all for the way things are, while we watch them on TV and dream of making it big and congratulating them for screwing us over so bad.
Posted on Reply
#20
DaedalusHelios
Public debt is a serious problem if it is close to or exceeds your country's GDP. Foreign investment also plays a part in all of it but that explanation takes longer than I have time for right now.
Posted on Reply
#21
The Von Matrices
by: FordGT90Concept
Government has no control over the private banks beyond regulation. It is entirely up to the bank whether or not to issue a loan. There was regulations put in place following the 2007 collapse that may have muddied the waters but ultimately, it is still up to the bank because it is the bank's money.

$500 million is a lot of money but it is far from the biggest loan ever issued.
Just remember, this is both a credit line and a secured loan. A credit line means that the company isn't taking out a $500 million loan; the company has the option to take out up to $500 million in loan. Also, it's a secured loan, so it's much less risky than an unsecured loan or a stock purchase. If Bank of America really believed in AMD, it would take stock in the company or make an unsecured loan; a secured loan is just a hedge against a higher risk investment.
Posted on Reply
#22
theoneandonlymrk
by: Steevo
The gold standard no longer exists.


Now its based on the credit worthy dollar and political/military power of the US.

Europe is in the same boat as the US in terms of debt and finance, a few countries (same as some of our states) float the countries like Greece and Italy ( not the same as states in the south where hillbillies and racist republicans live) that can't afford to make it due to trade differences.

Sure would be nice if we had a global government that used the highest producing areas to make sure the whole of humanity was fed and taken care of and allowed people to pursue their dream jobs instead of us all slaving for the top 1% to shit down fractions of their worth and then blame us all for the way things are, while we watch them on TV and dream of making it big and congratulating them for screwing us over so bad.
steevo ,sounds a bit socialist to me but i do agree , i dont understand why there isnt more of a push in some areas,, but then we do have the EU as a non ideal example,ie some good from it but no straight or ugly bananas :p
Posted on Reply
#23
claylomax
by: The Von Matrices
Just remember, this is both a credit line and a secured loan. A credit line means that the company isn't taking out a $500 million loan; the company has the option to take out up to $500 million in loan. Also, it's a secured loan, so it's much less risky than an unsecured loan or a stock purchase. If Bank of America really believed in AMD, it would take stock in the company or make an unsecured loan; a secured loan is just a hedge against a higher risk investment.
Thank you for your explanation, very helpful, you know your stuff. I don't know much about economics.;)
Posted on Reply
#24
MyTechAddiction
The gold standard is not in use since to 70s when the IMF and USA decided to abandon the gold standard.The main reason was to allow increased borrowing and thus increase the investment capacity.At least in theory a nation`s currency is covered in some percentage by its reserves ( gold , silver, etc), however that percentage is steadily dropping.
Posted on Reply
#25
Xzibit
by: The Von Matrices
Just remember, this is both a credit line and a secured loan. A credit line means that the company isn't taking out a $500 million loan; the company has the option to take out up to $500 million in loan. Also, it's a secured loan, so it's much less risky than an unsecured loan or a stock purchase. If Bank of America really believed in AMD, it would take stock in the company or make an unsecured loan; a secured loan is just a hedge against a higher risk investment.
FYI

Bank Of America holds 1,224,904 shares of AMD
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