AMD wraps early tenders in offer for 8 1/8% notes, calls remainder

By Susanna Moon

Chicago, June 23 – Advanced Micro Devices, Inc. settled all of the early tendered $278.9 million of outstanding 8 1/8% senior notes due 2017, according to an 8-K filing with the Securities and Exchange Commission.

Investors had tendered $145.13 million principal amount, or 52.04%, of the notes as of midnight ET on June 19, the consent date, with $133.76 of the notes left outstanding as of June 20.

As a result, the company secured the needed consents to amend the notes.

The company issued a call on June 20 to redeem the remaining notes on June 25.

The consent payment deadline was extended from midnight ET on June 13, as announced June 16.

As of the previous consent deadline, investors had tendered $135.3 million, or 48.5%, of the notes, or about $4.1 million principal amount less than required to reduce the redemption notice period to three days from 30 calendar days, the company previously said.

The tender offer will continue until midnight ET on July 3. The offer was originally set to end on June 27. The offer began June 2.

Tendered notes my no longer be withdrawn, as of the original consent deadline.

As previously announced, the total purchase price will be $1,045.88 for each $1,000 of notes tendered by the consent date.

The total amount includes $20.00 for each $1,000 principal amount.

Holders who tender their notes after the consent date will receive $1,025.88 for each $1,000 of notes.

The current redemption price is $1,040.63 per $1,000 principal amount, a previous release noted.

AMD plans to finance the tender offer using proceeds from an upsized issue $500 million of 7% 10-year senior notes, which priced June 2, as previously reported by Prospect News.

The company previously said it also may tap cash on hand, including the remaining proceeds from its February offering of its 6¾% senior notes due 2019.

The tender is conditioned upon closing of the new notes offering.

J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200) is the dealer manager for the tender offer and solicitation agent for the consent solicitation. MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500) is the information agent and depositary.

“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,” AMD senior vice president and chief financial officer Devinder Kumar, said in a company press release.

“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 is a Sunnyvale, Calif.-based semiconductor manufacturer.

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