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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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By crystal clear on 8/11/2007 12:17:32 AM , Rating: 2
quote:
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 ?


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs

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