Monday, June 2nd 2014

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

AMD (NYSE: AMD) today announced that it has agreed to sell $500 million aggregate principal amount of its 7.00% Senior Notes due 2024 in a private offering. AMD intends to close the transaction on or around June 16, 2014. AMD estimates that the net proceeds from the issuance and sale of the senior notes (the "Net Proceeds") will be approximately $490 million after deducting the initial purchasers' discounts and estimated offering expenses. AMD intends to use the Net Proceeds to fund the purchase of all 8.125% Senior Notes due 2017 (the "8.125% Notes") that are early tendered (the "Early Tender") in accordance with the terms of a tender offer that was announced earlier today (the "8.125% Tender Offer"). To the extent AMD still has 8.125% Notes outstanding following settlement of the Early Tender, prior to or following the expiration of the 8.125% Tender Offer, AMD intends to use the remaining Net Proceeds to redeem any and all remaining outstanding 8.125% Notes. AMD will use the remaining Net Proceeds after the completion of the 8.125% Tender Offer and any redemption of 8.125% Notes to redeem, repurchase or otherwise retire other outstanding indebtedness.

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 news 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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7 Comments on AMD Announces Pricing of Private Offering of $500 Million of Senior Notes

#1
Arjai
Oh well, I thought I might be able to get in on some action here but, NO!!
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#2
Steevo
Is it just me or is AMD sinking a lot of money into early buybacks? Either they are doing it to line the pockets of those who can do it, or to make their bottom line just in the black instead of paying taxes.
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#3
HalfAHertz
by: Steevo
Is it just me or is AMD sinking a lot of money into early buybacks? Either they are doing it to line the pockets of those who can do it, or to make their bottom line just in the black instead of paying taxes.
It does look like some fancy accounting magic trick. Maybe someone knowledgeable will be able to decipher it for us.
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#4
Hilux SSRG
I think they are retiring some older higher rate notes for cheaper lower notes. But I'm sure there is more than just that.
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#6
Fourstaff
7% is still pretty high given current bond prices, in comparison the US 10 year bond today is 2.58%, and Intel 2022 is about 3%.
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#7
john_
The risk lending money to AMD is bigger than the risk lending money to US or Intel. Bigger risks, bigger interest.
Germany has managed to borrow money in the past with... negative interest.
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