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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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Crucial information.....
By crystal clear on 8/10/2007 11:42:04 PM , Rating: 3
All those commenting on this subject should take these factors into consideration-

A regulatory filing from last October details conditions under which AMD must pay back the debt early:

--All net proceeds from any new debt

--All cash proceeds from asset sales over $30 million

--All cash proceeds from sales of AMD's stake in its former memory chip unit, Spansion Inc.

--Half of the net proceeds from issuing new shares

--Half of excess cash flow



plus more stringent terms & conditions-read the regulatory filings for more details.




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