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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: Sold, or will sell?
By Orthogonal on 8/10/2007 4:25:31 PM , Rating: 2
Hector Ruiz? When did you get an account and start posting on DT.

RE: Sold, or will sell?
By mmarq on 8/10/2007 5:52:51 PM , Rating: 2
Hello Paul!

... the same day when 'one' has heard that Paul Ottelini had did it... only to find out that ' one's buddy ' was already there a long time ago with his congregation!

RE: Sold, or will sell?
By mmarq on 8/10/2007 6:23:46 PM , Rating: 2
How rude of me...

I forgot to clearly elucidate my friend;

Stock market ?...

RE: Sold, or will sell?
By Ringold on 8/12/2007 4:18:18 PM , Rating: 2
After a massive bull market stretch back years, with the indexes still positive for the year, and you refer to it as a bloodbath?

Even the big-name commonly held mutual funds are still up huge for the year.

Not to mention long term average annual gains of around 10%.

Sorry, but any view other than long term market participation is way, way out of the mainstream. Not my fault if you bought a bunch of home builders, REITs or mortgage companies earlier this year ;)

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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