AMD Announces $1.8 Billion Convertible Note Offering

The Street has been predicting for weeks now that Advanced Micro Devices (AMD) was going to need to raise more capital, and now it has: yesterday afternoon, the company announced plans to offer $1.8 billion of convertible senior notes, with a potential $400 million in additional notes to cover over allotments.

Terms of the notes will be determined in negotiations between AMD and the initial purchasers, the company said. The notes will offered to institutional buyers under Rule 144A.

The company said at least $500 million of the proceeds will be used to repay a portion of its term loan from Morgan Stanley which was used to finance a portion of its ATI acquisition.

In after hours trading, the stock was down 19 cents at $13.85.

AMD 1-yr chart