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ADVANCED MICRO DEVICES INC 8-K Report, Material Agreement (Jun 8, 2022)

Filed June 8, 2022For Securities:AMD

Summary

Advanced Micro Devices Inc. (AMD) announced on June 7, 2022, the successful pricing of a $1 billion aggregate principal amount offering of senior notes. This offering consists of $500 million in 3.924% Senior Notes due 2032 and $500 million in 4.393% Senior Notes due 2052. The company intends to use the net proceeds from this offering for general corporate purposes, providing financial flexibility for its ongoing operations and strategic initiatives. The transaction was executed through an underwriting agreement with a syndicate of reputable financial institutions, including Barclays Capital Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and Wells Fargo Securities, LLC. The offering was registered under the Securities Act via a Form S-3 registration statement and a prospectus supplement. The closing of the offering was anticipated for June 9, 2022, subject to customary conditions.

Key Highlights

  • 1AMD priced a $1 billion public offering of senior notes.
  • 2The offering includes two tranches: $500 million of 3.924% Senior Notes due 2032 and $500 million of 4.393% Senior Notes due 2052.
  • 3Proceeds from the offering are earmarked for general corporate purposes.
  • 4The underwriting syndicate includes major financial institutions such as Barclays, BofA Securities, Credit Suisse, J.P. Morgan, and Wells Fargo Securities.
  • 5The notes are senior unsecured obligations of the Company.
  • 6The offering was registered under SEC Form S-3, indicating a streamlined process for public companies.
  • 7The filing includes press releases announcing the launch and pricing of the offering.

Frequently Asked Questions

The company intends to use the net proceeds from this offering for general corporate purposes. This generally includes funding operations, capital expenditures, working capital, or other strategic investments.

AMD is issuing two types of notes: $500 million of 3.924% Senior Notes due 2032 and $500 million of 4.393% Senior Notes due 2052. These notes are senior unsecured obligations of the company.

The underwriting agreement was entered into on June 7, 2022, and the company issued press releases announcing the launch and pricing on the same day. The offering was expected to close on June 9, 2022, subject to the satisfaction of customary closing conditions.

No, the 2032 Notes and 2052 Notes are described as senior unsecured obligations of the Company, meaning they are not backed by specific company assets but are general claims against the company.