Tuesday, April 24, 2007
Advanced Micro Devices announced its intention to offer some $1.8 billion in convertible senior notes, as part of a private offering to qualified institutional buyers.
AMD expects to grant to the initial purchasers a 30-day option to purchase up to $400 million aggregate principal amount of additional notes to cover over allotments.
In connection with the offering, AMD expects to enter into capped call transactions, which are intended to reduce the potential dilution to AMD's common stockholders upon any conversion of the notes. AMD expects to use a portion of the net proceeds of the offering to pay the cost of the capped call transactions.
AMD expects to use at least $500 million of the remaining net proceeds of the offering to repay a portion of the term loan AMD entered into with Morgan Stanley Senior Funding Inc. to finance a portion of the purchase price of, and expenses related to, the acquisition of ATI Technologies Inc.
By: DocMemory
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