AMD Announces Initial Settlement of Tender Offer for Its 8.125% Senior Notes Due 2017 & Redemption of All Remaining 8.125% No...
June 23 2014 - 8:15AM
Marketwired
AMD Announces Initial Settlement of Tender Offer for Its 8.125%
Senior Notes Due 2017 and Redemption of All Remaining 8.125% Notes
SUNNYVALE, CA--(Marketwired - Jun 23, 2014) - Advanced Micro
Devices, Inc. (NYSE: AMD) announced today that AMD has settled all
8.125% Senior Notes due 2017 ("8.125% Notes") that were tendered,
but not validly withdrawn, at or prior to 12:00 midnight, New York
City time, on June 19, 2014 (the "Consent Deadline") pursuant to
its previously announced tender offer (the "Tender Offer") and
consent solicitation (the "Consent Solicitation") with respect to
any and all of its outstanding 8.125% Notes. The Tender Offer will
expire at 12:00 midnight, New York City time, on July 3, 2014
unless extended or earlier terminated by AMD.
Under the terms of the Tender Offer, holders of 8.125% Notes who
(i) validly tendered their 8.125% Notes at or prior to the Consent
Deadline and (ii) consented to certain proposed amendments (the
"Proposed Amendments") in the Consent Solicitation to reduce the
minimum notice period required in connection with redemption of
8.125% Notes from 30 days to 3 business days were entitled to
receive a total payment of $1,045.88 for each $1,000 principal
amount of 8.125% Notes purchased pursuant to the Tender Offer.
As of the Consent Deadline, holders of $145,130,000 aggregate
principal amount of 8.125% Notes, representing 52.04% of the
outstanding 8.125% Notes, had validly tendered their 8.125% Notes
(the "Tendered Notes") and had submitted related consents. As a
result, the number of consents required to approve the Proposed
Amendments were received. After giving effect to the purchase of
the Tendered Notes, $133,760,000 aggregate principal amount of
8.125% Notes remain outstanding as of June 20, 2014. On June
20, 2014, AMD provided a redemption notice to holders of all
remaining outstanding 8.125% Notes. These remaining 8.125%
Notes will be redeemed on June 25, 2014.
"We continue to successfully execute our strategic plan for
long-term growth and profitability by driving our differentiated
compute and graphics technologies into a more diverse set of
markets," said AMD Senior Vice President and Chief Financial
Officer Devinder Kumar. "This latest financial transaction is part
of the ongoing work to further improve our debt profile and
financial foundation as we continue to transform the company."
AMD expects that the impact of its recent offering of its 7.00%
Senior Notes due 2024 and subsequent use of proceeds will be
largely neutral in terms of aggregate outstanding debt. AMD also
expects to incur a charge of approximately $50 million in the
second quarter of 2014 in connection with its purchase and
redemption of 8.125% Notes. AMD expects interest expense in
the second quarter of 2014 to be approximately $46 million, higher
than previously anticipated due to increased debt balances for part
of the second quarter of 2014. Beginning in the third quarter of
2014, AMD expects quarterly interest expense to decline to
approximately $42 million, driven by 2014 debt reprofiling
activities. AMD has retained J.P. Morgan Securities LLC to act as
the Dealer Manager for the Tender Offer. Questions regarding the
tender offer may be directed to J.P. Morgan Securities LLC at (800)
245-8812 (toll-free) or (212) 270-1200 (collect).
About AMD
AMD (NYSE: AMD) designs and integrates technology that powers
millions of intelligent devices, including personal computers,
tablets, game consoles and cloud servers that define the new era of
surround computing. AMD solutions enable people everywhere to
realize the full potential of their favorite devices and
applications to push the boundaries of what is possible. For more
information, visit http://www.amd.com.
Cautionary Statement
This news release contains "forward-looking" statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
and Section 27A of the Securities Act of 1933. Forward-looking
statements reflect current expectations and projections about
future events, including AMD's expectations about the impact of its
offering of its 7.00% Senior Notes due 2024, AMD's expected charges
in connection with its purchase and redemption of 8.125% Notes and
AMD's expected interest expense, and thus involve uncertainty and
risk. It is possible that future events may differ from
expectations due to a variety of risks and other factors such as
those described in AMD's Annual Report on Form 10-K for the fiscal
year ended December 28, 2013 and Quarterly Report on Form 10-Q for
the quarter ended March 29, 2014, as filed with the U.S. Securities
and Exchange Commission. It is not possible to foresee or
identify all such factors. Any forward-looking statements in
this news release are based on certain assumptions and analyses
made in light of AMD's experience and perception of historical
trends, current conditions, expected future developments and other
factors it believes are appropriate in the
circumstances. Forward-looking statements are not a guarantee
of future performance and actual results or developments may differ
materially from expectations. AMD does not intend to update
any particular forward-looking statements contained in this news
release.
AMD, the AMD Arrow logo, and combinations thereof, are
trademarks of Advanced Micro Devices, Inc. Other names are for
informational purposes only and may be trademarks of their
respective owners.
Media Contact Drew Prairie 512-602-4425 drew.prairie@amd.com
Investor Contact Ruth Cotter 408-749-3887 ruth.cotter@amd.com
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