8-KMaterial AgreementsFinancial EventsExhibits & Filings

ADVANCED MICRO DEVICES INC 8-K Report, Material Agreement (Jun 16, 2014)

Filed June 16, 2014For Securities:AMD

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.

Frequently Asked Questions

This 8-K filing announces that Advanced Micro Devices, Inc. (AMD) has entered into a material definitive agreement related to the issuance of $500 million in Senior Notes due 2024 and the associated Registration Rights Agreement.

The notes carry a 7.00% annual interest rate, are due on July 1, 2024, and are general unsecured senior obligations of AMD. Interest is paid semi-annually, starting January 1, 2015.

The Registration Rights Agreement requires AMD to file an exchange offer registration statement with the SEC to allow holders of the newly issued notes to exchange them for identical registered notes within one year. This is important because failure to do so (a 'Registration Default') can lead to penalty interest rate increases on the notes.

Yes, if AMD fails to complete the exchange offer of the notes within the specified timeframe (June 16, 2015, or slightly later depending on SEC effectiveness), the interest rate on the notes can increase incrementally by up to 1.00% per annum, compounding in 90-day periods.