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.
quote: They are neither BIASED or DUMB IDIOTS.