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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 crystal clear on 8/11/2007 2:43:08 AM , Rating: 2
These loans and notes and ratings makes AMD's accounts an absolute minefield.

S&P + Moodys both are giving negative ratings !

They are neither BIASED or DUMB IDIOTS.


RE: Sold, or will sell?
By mmarq on 8/11/2007 5:07:53 PM , Rating: 2
quote:
They are neither BIASED or DUMB IDIOTS.


Of course not. But they are the 'ones' being excluded somehow from this deal... what do you think they'll vote for ?

And this is the point i'm so glad about this deal, and not in here for sterile 'fanboyism' discussions. Finally some company has realized they don't need the S&P + Moodys of this world upon a crises!... absolutely great!


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