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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 16nm on 8/12/2007 3:17:08 PM , Rating: 2
Why? How does ATI help AMD create CPU/GPU processors? AMD should have hired a few top engineers from ATI for their Fusion, not undertaken a multibillion $ acquisition that is mostly unrelated.

Oh, don't get me wrong, I don't think Fusion is a bad idea at all. I just think that it is not as important as AMD think it is. ATI cost TOOOO much and they don't even have anything related to this concept already in the works. I don't think ATI brought anything to the table with regard to this. AMD should have done it on their own like Intel are doing, OR bought a company that is already moving in this direction (fusing CPU and GPU) if one even exists! Now, the ATI guys are in the toilet when they were a reasonably healthy company at the time of acquisition. Look at the market share Nvidia keep gaining. When will this come to an end? ANd AMD are just as f'ed up for wasting so much d@mn money. The CEO and CFO should be in some very deep poo-poo if you ask me. Their heads should be rolling. In my opinion, they were only concerned with becoming a large chip manufacturer to massage their egos all else be damned.

I have a feeling Intel are going to absolutely dominate the whole idea of the CPU/GPU processor. AMD are royally screwed. Intel tripped up and gave AMD an excellent opportunity. AMD took very little to no advantage of it, and a couple years later, everything is a mess. Proof: Now that's desperation.

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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