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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 8/12/2007 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.


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