Summary
Advanced Micro Devices, Inc. (AMD) filed an 8-K report on August 15, 2012, detailing two significant financial events. The company issued $500 million in 7.50% Senior Notes due 2022, securing a long-term debt offering. This issuance was accompanied by a Registration Rights Agreement, obligating AMD to register these notes for exchange with freely tradable notes within a year, or face potential interest rate increases. Concurrently, AMD utilized approximately $498.9 million of its existing cash reserves to fully repay its 5.75% Convertible Senior Notes due 2012. This action addresses a maturing debt obligation and demonstrates the company's use of cash to manage its balance sheet.
Key Highlights
- 1Issued $500 million in 7.50% Senior Notes due 2022.
- 2Repaid in full $500 million aggregate principal amount of 5.75% Convertible Senior Notes due 2012 using existing cash.
- 3Entered into a Registration Rights Agreement for the new senior notes, with a deadline to file an exchange offer registration statement by August 15, 2013.
- 4Potential for interest rate increase of up to 1.00% on new senior notes if registration deadlines are not met.
- 5New senior notes are general unsecured senior obligations of the Company.
- 6Maturity date for the new senior notes is August 15, 2022.
- 7No third-party guarantee for the new senior notes.