AMD is a company that has been strapped for cash lately. In late April, the Sunnyvale, CA based company announced that it would offer
Convertible Senior Notes to raise around $2.2 billion USD. AMD set a conversion
point of $42.12 USD per share at a time when its stock price was $14 USD.
The company's efforts to raise more cash have intensified
even further. Yesterday, AMD priced an additional $1.5 billion USD in
Convertible Senior Notes at a conversion point of $20.13 USD per share. The
conversion price represents a 50 percent premium over AMD's $13.42 USD stock price
at close of day on August 8.
AMD plans to use the funds received from the offering to pay an outstanding
balance on a loan from Morgan Stanley Senior Funding in late 2006. The company
borrowed around $2.5 billion USD in loans and $1.2 billion USD in common stock
to fund the $5.4
billion purchase of ATI Technologies. The company also reported a net loss of $600
million USD last quarter while archrival Intel
reported net income of $1.3 billion USD.
quote: It's called investing for a reason
quote: But they threaten to go private!
quote: ...A Buy Out is inevitable with a massive cash infusion-Good for AMD...
quote: Is this an announcement that AMD sold the bonds, or that they plan to sell them? I read the article but don't understand the phrasing.
quote: They are neither BIASED or DUMB IDIOTS.
quote: This has become a very tiring argument.
quote: Advantage because IBM/AMD (not only AMD!) process is clearly superior to the bulk process of Intel to the point of the SOI DSL without hi-k/metal of IBM/AMD at 65nm, is superior to Intel bulk hi-k/metal at 45nm, otherwise how could IBM manage to get ~5,0Ghz in a 17 stage pipeline DP chip with ~340mm2 at 65nm (>3x size of DP Penryn(107mm2) when Intel is claiming 3,3Ghz and launch top at 3,16Ghz 120W TDP!??...
quote: Get your products out into the market- then talk about them. -thats what IBM does- talk less work more.
quote: With questions about the long term viability over the ATI acquisition, and the huge debt it engendered, AMD's current problems are its own responsibility.To blame any long term business failures of AMD, on possible, as yet unproved, misadventures of Intel, has no bearing on AMD's current precarious position.
quote: but if Fusion,Torrenza and CTM play out good... they may end up with much reasons to celebrate.
quote: AMD has as in the previous offering entered into capped call transactions a move to reduce dilution to stockholders...Shareholders are not fools-they know how to protect their interests.
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