Summary
Advanced Micro Devices, Inc. (AMD) announced the issuance of $500 million in 7.00% Senior Notes due 2024. This debt offering, detailed in an Indenture with Wells Fargo Bank, National Association, represents a significant capital raise for the company. The notes are unsecured general senior obligations and will mature on July 1, 2024, with interest payments due semi-annually starting January 1, 2015. In conjunction with the issuance, AMD entered into a Registration Rights Agreement with J.P. Morgan Securities LLC. This agreement obligates AMD to file an exchange offer registration statement with the SEC to allow for the exchange of these new notes for registered notes ("Exchange Notes") within one year. Failure to meet these registration deadlines, referred to as a "Registration Default," could trigger incremental increases in the interest rate on the notes, capped at 1.00% annually.
Key Highlights
- 1AMD issued $500 million in 7.00% Senior Notes due 2024.
- 2The notes are general unsecured senior obligations of the company.
- 3Interest payments are scheduled for January 1 and July 1 annually, commencing January 1, 2015.
- 4Maturity date for the notes is July 1, 2024.
- 5A Registration Rights Agreement requires AMD to register the notes for exchange within one year.
- 6Failure to meet registration deadlines can result in interest rate increases of up to 1.00%.
- 7No third party provides a guarantee for these notes.