8-KMaterial AgreementsOther EventsExhibits & Filings

ADVANCED MICRO DEVICES INC 8-K Report, Material Agreement (Nov 21, 2006)

Filed November 21, 2006For Securities:AMD

Summary

Advanced Micro Devices, Inc. (AMD) filed an 8-K on November 21, 2006, detailing a material definitive agreement and other events. The primary focus for investors is the successful completion of an underwritten public offering (Offering) by its indirect wholly owned subsidiary, AMD Investments, Inc. (AMDI), of 21,000,000 shares of Spansion Inc. Class A common stock. This offering, which commenced on November 15, 2006, resulted in net proceeds of $278,210,625 for AMDI, excluding expenses. The net proceeds from the Spansion Inc. stock sale are designated for a specific use: to prepay a portion of the outstanding amount, plus accrued interest, under AMD's Credit Agreement dated October 24, 2006. This move indicates a strategic effort by AMD to manage its debt obligations. Additionally, AMD and AMDI have entered into a 90-day lock-up agreement, restricting the disposal of any Spansion Inc. common stock or convertible securities other than those included in the Offering, which is standard practice for such transactions.

Key Highlights

  • 1AMD's subsidiary, AMD Investments, Inc. (AMDI), sold 21,000,000 shares of Spansion Inc. Class A common stock through an underwritten public offering.
  • 2The offering was completed on November 21, 2006.
  • 3AMD received net proceeds of $278,210,625 (excluding expenses) from the sale of Spansion Inc. shares.
  • 4The net proceeds are earmarked to prepay a portion of the outstanding amount and accrued interest under AMD's Credit Agreement dated October 24, 2006.
  • 5AMD and AMDI entered into a 90-day lock-up agreement, preventing the sale of additional Spansion Inc. shares or related securities during this period.

Frequently Asked Questions

This 8-K filing announces the entry into a material definitive agreement for the sale of Spansion Inc. stock and the subsequent completion of that public offering, including the net proceeds received and their intended use.

AMD, through its subsidiary AMDI, raised $278,210,625 in net proceeds (excluding expenses) from the offering.

The net proceeds will be used to prepay a portion of the outstanding amount and accrued interest under AMD's Credit Agreement dated October 24, 2006.

The lock-up agreement, in place for 90 days from November 15, 2006, restricts AMD and AMDI from selling any further shares of Spansion Inc. common stock or convertible securities, except for the shares already sold in the Offering. This is a standard measure to stabilize the stock price post-offering.