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

Bitdefender 2018

Secure and Save before time runs out with Bitdefender Exclusive Clearance Offer! Get Bitdefender Total Security 2018 Now!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?