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AMD to issue $2.2 billion USD in Convertible Senior Notes

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.



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RE: AMD gets a knew oan to pay for an old loan..
By spluurfg on 8/10/2007 11:48:27 AM , Rating: 1
At the time of maturity, all of the notes will convert into shares, and AMD will have converted their old loan into equity. Since debt has become more expensive, this should make sense...


By crystal clear on 8/11/2007 12:03:29 AM , Rating: 2
AMD has as in the previous offering entered into capped call transactions in connection with the offering, a move intended to reduce the potential dilution to common stockholders if the notes are converted into shares.

Shareholders are not fools-they know how to protect their interests.

AMD management is well aware of that, shareholders could send them off to retirement-

Pension Road Maps !.


“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs

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