8-KMaterial AgreementsFinancial EventsOther Events+1

ADVANCED MICRO DEVICES INC 8-K Report, Material Agreement (Sep 14, 2016)

Filed September 14, 2016For Securities:AMD

Summary

Advanced Micro Devices, Inc. (AMD) announced the successful completion of a significant capital raise through concurrent public offerings of common stock and convertible senior notes. The company sold 100 million shares of common stock at $6.00 per share, generating approximately $580.5 million in net proceeds after offering expenses. Additionally, AMD issued $700 million in aggregate principal amount of 2.125% convertible senior notes due 2026, yielding approximately $680.0 million in net proceeds after expenses. These offerings provide AMD with substantial financial flexibility to support its strategic initiatives and growth. The convertible notes carry an interest rate of 2.125% and are convertible into AMD common stock under specific conditions, with an initial conversion price of approximately $8.00 per share. The successful completion of these offerings demonstrates investor confidence in AMD's future prospects.

Key Highlights

  • 1Completed a public offering of 100 million shares of common stock at $6.00 per share.
  • 2Raised approximately $580.5 million in net proceeds from the common stock offering.
  • 3Issued $700 million in aggregate principal amount of 2.125% convertible senior notes due 2026.
  • 4Generated approximately $680.0 million in net proceeds from the convertible notes offering.
  • 5The convertible notes have an initial conversion price of approximately $8.00 per share.
  • 6Underwriters were granted options to purchase up to 15 million additional shares of common stock and $105 million aggregate principal amount of notes for over-allotments.
  • 7The capital raised is intended to provide financial flexibility for the company.

Frequently Asked Questions

The primary purpose of these concurrent offerings was to raise capital and enhance AMD's financial flexibility. This capital can be used to fund strategic initiatives, support growth opportunities, and strengthen the company's balance sheet.

The notes bear a 2.125% annual interest rate, payable semi-annually. They mature on September 1, 2026. The initial conversion rate is 125.0031 shares of common stock per $1,000 principal amount, which equates to an initial conversion price of approximately $8.00 per share. Conversion is permitted under certain conditions related to stock price performance and corporate events.

AMD raised approximately $580.5 million in net proceeds from the common stock offering and approximately $680.0 million in net proceeds from the convertible senior notes offering, totaling approximately $1.26 billion in net proceeds.

Yes, AMD and its directors and executive officers agreed not to sell or transfer any of their common stock for 90 days after September 6, 2016, without the written consent of J.P. Morgan Securities LLC, subject to certain exceptions.