Less than one week after disclosing a $611 million first-quarter loss, chip maker Advanced Micro Devices (AMD) Monday said it hopes to raise up to $2.2 billion through the sale of convertible notes to institutional investors. AMD will offer an initial $1.8 billion in convertible notes and will offer buyers an option to purchase an additional $400 million in notes. The company plans to negotiate the interest rate and other terms of the notes with the purchasers.
At least $500 million from the funds raised through this offering will be used to pay back part of a loan from Morgan Stanley Senior Funding for AMD’s acquisition of ATI Technologies. The remainder of the funds will be used for general corporate expenses, including capital expenditures, AMD said.
Source: InfoWorld