backtop


Print 65 comment(s) - last by Aerius.. on Aug 13 at 6:32 PM

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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Bad move AMD
By slickr on 8/12/2007 9:18:44 AM , Rating: 2
Bad move from AMD. Instead of investing those 5$ billion in more production fabs or increase in inteligence force they bought in the worst time for them. Even Intel is not so powerful to buy ATI but AMD with it's only 28% market share were determined to buy it. Well here is the result now:
Slow and old products
Problems with production and development
Finance problems
Reduced market share and profits
and should i count more!




"Nowadays you can buy a CPU cheaper than the CPU fan." -- Unnamed AMD executive

Related Articles
AMD Reports Q2 Revenue
July 19, 2007, 5:28 PM
AMD's Large Debt Mounting Up Fast
April 29, 2007, 1:54 PM













botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki