AMD Plans $400 Mln Private Senior Notes Offering

(RTTNews) - Advanced Micro Devices, Inc. (AMD) said Monday that it plans to commence a private offering of $400 million aggregate principal amount of senior notes due 2024.

The company said it plans to use the net proceeds received in the offering to repurchase its outstanding 8.125% Senior Notes due 2017 through a tender offer which also launched Monday. AMD plans to use the net proceeds to fund the purchase of all 8.125% Notes that are early tendered in accordance with the terms of the 8.125% tender offer.

To the extent AMD still has 8.125% Notes outstanding following settlement of the early tender, prior to or following the expiration of the 8.125% tender offer, the company plans to use the remaining net proceeds to redeem any and all remaining outstanding 8.125% Notes. To the extent the remaining net proceeds are not enough to redeem the then outstanding 8.125% Notes, AMD plans to use cash on hand, including the remaining net proceeds from its February 2014 offering of its 6.75% Senior Notes due 2019, if required, to fund the redemption of any such 8.125% Notes. To the extent AMD has remaining net proceeds after the completion of the 8.125% Notes tender offer and any redemption of 8.125% Notes, AMD will use such remaining net proceeds to redeem, repurchase or otherwise retire other outstanding indebtedness.