8-KMaterial AgreementsExhibits & Filings

ADVANCED MICRO DEVICES INC 8-K Report, Material Agreement (Dec 17, 2014)

Filed December 17, 2014For Securities:AMD

Summary

Advanced Micro Devices, Inc. (AMD) filed an 8-K on December 17, 2014, to report a material definitive agreement. Specifically, on December 11, 2014, the company and its wholly-owned subsidiary, AMD International Sales & Service, Ltd., entered into a First Amendment to their Loan and Security Agreement, originally dated November 12, 2013. This amendment significantly modifies the financial covenants related to the company's liquidity. The key change is the reduction of the minimum domestic cash or cash equivalents required to be held by the Borrowers from $500,000,000 to $250,000,000. This adjustment is intended to provide AMD with greater operational flexibility and reduce the risk of triggering restrictive terms or financial covenants under the existing loan agreement. No amendment fees were paid to the lenders.

Key Highlights

  • 1AMD entered into a First Amendment to its Loan and Security Agreement on December 11, 2014.
  • 2The amendment reduces the minimum required domestic cash and cash equivalents from $500 million to $250 million.
  • 3This change is intended to provide AMD with increased operational flexibility.
  • 4The amendment aims to prevent the triggering of certain financial covenants and restrictive terms.
  • 5The company did not pay any amendment fees to the lenders for this modification.
  • 6The original Loan and Security Agreement was dated November 12, 2013.
  • 7The filing was made by AMD and its wholly-owned subsidiary, AMD International Sales & Service, Ltd.

Frequently Asked Questions

The main purpose of the First Amendment is to provide Advanced Micro Devices, Inc. (AMD) with greater operational flexibility by reducing the minimum required amount of domestic cash and cash equivalents it must hold. This change also aims to prevent the triggering of certain financial covenants and restrictive terms within the existing loan agreement.

The amendment significantly lowers the liquidity requirement. The minimum amount of domestic cash or cash equivalents that AMD and its subsidiary must hold to avoid triggering certain covenants has been reduced from $500,000,000 to $250,000,000.

No, AMD did not pay any amendment fees to the lenders in connection with this First Amendment.

The parties involved are Advanced Micro Devices, Inc. (the Company), AMD International Sales & Service, Ltd. (a wholly-owned subsidiary and also a Borrower), the financial institutions acting as lenders, and Bank of America, N.A., acting as the agent for the lenders.