Advanced Micro Devices amendment extends revolver, reduces pricing

By Wendy Van Sickle

Columbus, Ohio, March 21 – Advanced Micro Devices, Inc. amended its amended and restated loan agreement dated April 15, 2014 on Tuesday to extend its maturity date and reduce pricing, among other changes, according to an 8-K filing with the Securities and Exchange Commission.

The loan agreement now matures on March 21, 2022, pushed back from April 14, 2020.

Interest for revolving loans and letters of credit is now Libor plus a margin ranging from 125 basis points to 175 bps, down from 150 bps to 200 bps. The margin is based on average availability and is initially 175 bps.

The commitment fee was reduced to 25 bps from 37.5 bps.

Other changes include:

• Lowering the minimum threshold of availability required to be maintained by the obligors in order to avoid cash dominion to the greater of 10% of the total commitment amount and $50 million from the greater of 15% of the total commitment amount and $75 million;

• Changing the borrowing base reporting requirement threshold to the greater of $75 million and 20% of the borrowing base from $25 million outstanding on the revolving line of credit, resulting in less frequent borrowing base reporting by the company;

• Amending maximum dollar limits related to supply chain finance arrangements from amounts that qualify as factoring arrangements to $300 million during AMD’s second and third fiscal quarters. The limit will continue to be $220 million during the first and fourth fiscal quarters; and

• Reducing the sublimit for letters of credit to $45 million from $75 million.

Bank of America, NA is the agent.

The semiconductor company is based in Sunnyvale, Calif.

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