Advanced Micro Devices gets $500 million amended, restated revolver

By Angela McDaniels

Tacoma, Wash., April 16 – Advanced Micro Devices, Inc. and AMD International Sales & Service, Ltd. entered into an amended and restated loan agreement on Tuesday that provides for a $500 million senior secured asset-based revolving line of credit due April 14, 2020, according to an 8-K filing with the Securities and Exchange Commission.

Up to $75 million of the revolver is available for letters of credit.

Borrowings under the revolver are limited to up to 85% of eligible accounts receivable (90% for certain qualified eligible accounts receivable), minus specified reserves.

The revolver has a $200 million accordion feature.

If the average availability under the revolver is equal to or greater than 66.66% of the total commitment amount and the fixed-charge coverage ratio for the most recently ended four quarters is greater than or equal to 1.25 to 1.00, the interest rate is Libor plus 125 basis points. Otherwise, the interest rate is Libor plus a margin that ranges from 150 bps to 200 bps depending on average availability.

The unused line fee is 37.5 bps. The fee decreases to 25 bps when 35% or more of the revolver is used.

Bank of America, NA is the agent. Bank of America Merrill Lynch is the joint lead arranger and joint bookrunner. Wells Fargo Bank, NA is the joint lead arranger, joint bookrunner and syndication agent. Barclays Bank plc and JPMorgan Chase Bank, NA are the documentation agents.

The revolver is secured by a first-priority security interest in the loan parties’ accounts receivable, inventory, deposit accounts maintained with the agent and other specified related assets.

The semiconductor company is based in Sunnyvale, Calif.

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