AMD (AMD) Announces $600M Common Stock, $450M Conv. Notes Offerings

September 6, 2016 4:38 PM EDT

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AMD (Nasdaq: AMD) announced that it intends to commence concurrent public offerings, subject to market and other conditions, of approximately $600 million of its common stock (the "Shares") and $450 million aggregate principal amount of its convertible senior notes due 2026 (the "New Notes"). AMD is offering all of the Shares and the New Notes. In addition, AMD expects to grant the underwriters a 30-day option to purchase up to approximately $90 million of additional shares of common stock at the public offering price and up to $67.5 million principal amount of additional convertible senior notes.

AMD intends to use net proceeds of $1,020 million received from the offerings to repay its borrowings under its credit facility and/or to purchase its outstanding senior notes. After the completion of a tender offer for its outstanding senior notes, AMD has the option, but not the obligation, to call any and all of the untendered 7.75 percent Senior Notes due 2020 with any remaining net proceeds. AMD will use any remaining net proceeds for capital expenditures, working capital and other general corporate purposes.

J.P. Morgan Securities LLC, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are acting as joint lead book-running managers of the offering of the Shares. BofA Merrill Lynch, Wells Fargo Securities, LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC are also joint book-running managers for the offering of the Shares.

J.P. Morgan Securities LLC, Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are joint lead book-running managers of the offering of the New Notes. BofA Merrill Lynch, and Wells Fargo Securities, LLC are also joint book-running managers for the offering of the New Notes.

An automatically effective registration statement relating to these securities was filed with the Securities and Exchange Commission on Sept. 6, 2016. The offering is being made only by means of an effective shelf registration statement, including a prospectus supplement forming a part of the effective shelf registration statement. Copies of the preliminary prospectus supplement may be obtained, when available, from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, N.Y. 11717, by telephone: (866) 803-9204; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Ave., Edgewood, N.Y. 11717, by email: Barclaysprospectus@broadridge.com, by telephone: (888) 603-5847; or Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Ave., New York, N.Y. 10010, by email: newyork.prospectus@credit-suisse.com, by telephone: 1-800-221-1037.



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