Advanced Micro Devices, Inc. Prices $1.5 Billion of 5.75% Convertible Senior Notes due 2012
Subject: General Tech | August 9, 2007 - 11:15 AM | Jeremy Hellstrom
SUNNYVALE, Calif. - August 9, 2007 --Advanced Micro Devices, Inc. (NYSE:
AMD) today announced the pricing of $1.5 billion aggregate principal
amount of 5.75% Convertible Senior Notes due 2012 in a private placement
to qualified institutional buyers pursuant to Rule 144A under the
Securities Act of 1933, as amended. AMD granted to the initial purchaser
a 30-day option to purchase up to $225 million aggregate principal
amount of additional notes to cover over-allotments, if any.
Interest on the notes will be paid semiannually on February 15 and
August 15 at a rate of 5.75% per year. The notes will be convertible
into shares of common stock based on an initial conversion rate of
49.6771 shares per $1,000 principal amount of notes, which is equivalent
to an initial conversion price of approximately $20.13 per share. This
initial conversion price represents a premium of approximately 50%
relative to the last reported sale price on August 8, 2007 of AMD's
common stock of $13.42 per share. Holders of the notes may require AMD
to repurchase the notes for cash equal to 100% of the principal amount
to be repurchased plus accrued and unpaid interest upon the occurrence
of certain designated events.
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