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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 12:56:14 AM , Rating: 2
quote:
Advantage because IBM/AMD (not only AMD!) process is clearly superior to the bulk process of Intel to the point of the SOI DSL without hi-k/metal of IBM/AMD at 65nm, is superior to Intel bulk hi-k/metal at 45nm, otherwise how could IBM manage to get ~5,0Ghz in a 17 stage pipeline DP chip with ~340mm2 at 65nm (>3x size of DP Penryn(107mm2) when Intel is claiming 3,3Ghz and launch top at 3,16Ghz 120W TDP!??...


I am neither an Intel/AMS fanboy.I past that stage longtime ago.

I buy the best products in the market at the best prices(for me).

I see & decide on whats offered in the market for sale.

Right now & for the near future-only Intel & IBM have product offerings that meet consumer expectations/demands.

AMD has only "roadmaps/slides/claims(with no supporting benchmarks) to offer .

I dont buy roadmaps-I/we buy REAL products that work & meet their expectations & our requirements.

My message to AMD-

Get your products out into the market- then talk about them. -thats what IBM does- talk less work more.

Talk on what you have achieved & NOT on what you plan to achieve.

The buyers want REAL products & NOT PLANS !

Real products bring in revenue for Intel/IBM .

AMD announcements dont bring anything of value.


RE: AMD gets a knew oan to pay for an old loan..
By mmarq on 8/11/2007 8:01:35 PM , Rating: 2
quote:
Get your products out into the market- then talk about them. -thats what IBM does- talk less work more.


Funny you say that!

IBM generally has taken 3-4 years to enter with a new processor, and they talk about them generally more than 1 year before market. Much different from the mainstream of 1-2 years of Intel and somehow AMD. AMD is late, definitely without doubt, with Barcelona for many reasons i believe, being the principal because K10 is 283mm2 where Conroe is 143mm2 at the 65nm process, and a 2 way MCM is definitely much more easy and fast to produce.

I Believe the real Barcelona as they intentioned in the first place, is going to be Shangai(6MB L3 cache + other things), because a 4 core with only 4MB L2/L3 cache when a Intel Quad has 8Mb seems definitely very low.

And that would have given a substantially superior K10 to what K10 is going to be now, and 'most probably' to current Core designs also. And i say that because is or should be very natural and logic and wealthy for the market and users to, for Intel and AMD to leapfrog each other upon interleaved consecutive upgrades.

But that would had putted K10 very well above 300mm2 at 65nm, without price market for the desktop, yielding too low also for it to have market against a 286mm2 core Quad, and worst if a DP ended up too week to take on a Quad on the server side(which seems very logic).

So they had most probably to had a roll back, a lot of tradeoffs had to be decided when hurry is a very logic enemy of efficiency, and with ATI acquisition and Fusion plans, a mess was installed.

That is i believe, a very plausible explanation. But i'm not advocating AMD. I've bought more AMD in recent years, mostly because i believe their HTT platform is much superior, and CPUs obsolesce 2-2 years to an almost worthless state anyway . But i've bought Intel before ( PII and P4), i can surely do it again. Only i want a competitive market for having better product at lower prices.


By crystal clear on 8/12/2007 6:35:30 AM , Rating: 2
"IBM generally has taken 3-4 years to enter with a new processor,"

IBM can afford this luxury-AMD cannot !

AMD is in such a desperate position that one bad move could spell them disaster.No place for mistakes !

Who is to be blamed for this-certainly not Intel,but the
(I emphasize this) "management of AMD".

R&D & manufacturing of AMD is the best available around-but the management is the worst available.

"So they had most probably to had a roll back, a lot of tradeoffs had to be decided when hurry is a very logic enemy of efficiency, and with ATI acquisition and Fusion plans, a mess was installed."


Again who is to be blamed-

R&D NO - Management YES

Management FAILURE is AMDs FAILURE-

Not the product ,not the R&D,not the manufacturing.


"Intel is investing heavily (think gazillions of dollars and bazillions of engineering man hours) in resources to create an Intel host controllers spec in order to speed time to market of the USB 3.0 technology." -- Intel blogger Nick Knupffer

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