AMD wraps two tender offers for some 6% convertibles, 8 1/8% notes

By Susanna Moon

Chicago, March 20 - Advanced Micro Devices, Inc. said investors had tendered $423,282,000 of its outstanding 6% convertible senior notes due 2015 and $51,065,000 of its 8 1/8% senior notes due 2017.

The tender offers ended at midnight ET on March 19.

The company accepted all of the tendered 6% convertibles for a total payment of $460,601,000 including accrued interest, according to a press release.

After settlement, $42.31 million principal amount of the convertibles remains outstanding.

For the 8 1/8% notes, AMD accepted for purchase $47,556,000 of the tendered notes, including $46,043,000 of notes that were tendered by 5 p.m. ET on March 5, the early tender date. Of the total amount tendered, $49,434,000 had been tendered by the early deadline.

The company will pay $50,662,000 to settle the 8 1/8% notes, including accrued interest. After settlement, $452,444,000 principal amount of the notes remains outstanding.

On Feb. 20 the company began a cash tender offer for up to $425 million principal amount of the 6% convertibles and a cash tender offer for up to $490 million of the 8 1/8% notes less the amount paid in the tender offer for its 6% convertibles, up to a total purchase amount of $200 million, according to previous press releases.

Funding for the offers will come from the proceeds of AMD's private offering of $500 million of senior notes due 2019.

The purchase price for each $1,000 principal amount will be $1,065 for the 6% convertibles and $1,014.83 for the 8 1/8% notes.

Those who tendered their 8 1/8% notes by the early tender date will receive $1,044.83 for each $1,000 principal amount, which includes an early premium of $30.00.

The company also will pay accrued interest to but excluding the payment date.

Tendered notes may be withdrawn at any time by the end of the offer.

BofA Merrill Lynch (888 292-0070 or 980 387-3907 collect) was the dealer manager. MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500 collect) was the information agent and depositary.

The tender offers were conditioned on the notes issue, which priced on Feb. 20.

AMD is a Sunnyvale, Calif.-based maker of computer processor chips.

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