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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 mmarq on 8/10/2007 4:45:54 PM , Rating: 2
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.

Of course its their responsibility. ATI was a risky plan as it appears, but if Fusion,Torrenza and CTM play out good... they may end up with much reasons to celebrate.

But 'possible' misadventures of Intel had nothing to do with ATI. And i say 'possible' because a verdict has not yet been reached. Its needed caution and decency. Fact that is fact is that 'evidences' has made the EU Commission to step in. Nevertheless caution is to be applyed.

But what if Intel lose in the courts and AMD is right in all their rantings ?

No end of the world... see my other reply to you above.

By crystal clear on 8/11/2007 12:17:32 AM , Rating: 2
but if Fusion,Torrenza and CTM play out good... they may end up with much reasons to celebrate.

The catch word "IF" & what happens when it turns into

"IF NOT"-they may end up into bankcruptcy & much reason for us to regret-No competition-No price cuts !

All your arguments depends on the "IF" factor.

By mmarq on 8/11/2007 8:29:14 PM , Rating: 2
And "IF NOT" is what ?

When CPUs had obsoleted from 2-2 years to an almost worthless state, for many from now, how much does 'precisely now' worth ?

"I modded down, down, down, and the flames went higher." -- Sven Olsen
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