AMD looks to raise $2.2 billion through debt sale

AMD hopes to raise up to $2.2 billion through the sale of convertible notes.

Less than one week after disclosing a $US611 million first-quarter loss, chipmaker, AMD said it hoped to raise up to $US2.2 billion through the sale of convertible notes to institutional investors.

AMD will offer an initial $US1.8 billion in convertible notes and will offer buyers an option to purchase an additional $US400 million in notes. The company plans to negotiate the interest rate and other terms of the notes with the purchasers.

At least $US500 million from the funds raised through this offering will be used to pay back part of a loan from Morgan Stanley Senior Fundin for AMD's acquisition of ATI Technologies. The remainder of the funds would be used for general corporate expenses, including capital expenditures, AMD said.

AMD has taken a financial beating in recent months. The company reported a first quarter loss of $US611 million -- more than double what analysts expected to see -- on revenue of $US1.23 billion. And the outlook for the current quarter is not encouraging: AMD last week predicted its second-quarter revenue will be flat to slightly up.

At the same time, AMD reported its cash position at the end of the first quarter on March 31 was $US1.17 billion.

The notes offering will greatly increase the amount of long-term debt that AMD holds. The company could see its debt rise from $US3.7 billion at the end of the first quarter to $US5.4 billion, if the offering is successful and purchasers exercise the option to buy additional notes.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Sumner Lemon

IDG News Service
Show Comments

Brand Post

Imou: At home with security

Modern living is all about functionality and security for everybody from the very young to the very old. With Imou anybody can enjoy smart life – the solution is at their fingertips.

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?