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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 mmarq on 8/11/2007 5:37:59 PM , Rating: 2
...A Buy Out is inevitable with a massive cash infusion-Good for AMD...

No. A buy out 'maybe' inevitable WITHOUT A VERY GOOD CASH INFUSION. The point is, if they have at least 1/3 of the very loyal, absolutely devoted no matter what, enthusiastic user base of Intel, as we can see from this forum, than they are safe.

If they don't, than no matter how superior or not their Barcelonas will be from the Cores, how pro-active the enthusiast user base is in seeking and seeing manipulated benchmarks favoring particular SSE implementations or other things...

..."wonder why there inst all encompassing, real good *applications centered* Linux benchamrks outside SPEC org, where anyone can see the source code and track dirty compiler tricks. Benchmarks should all be source available and compiler settings tracked"...

... they are downfall.

That is, i believe, one of the things they are betting with this notes deal.

RE: Sold, or will sell?
By crystal clear on 8/12/2007 5:40:19 AM , Rating: 2
I think 1Q 08 will show if I am correct or wrong on this.

Anyway nice exchanging opinions-you certainly have a good grip on your basics.

"Folks that want porn can buy an Android phone." -- Steve Jobs
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