By Kenneth Lim
Boston, April 24 - Advanced Micro Devices Inc. priced $2 billion of eight-year convertible senior notes after an overnight marketing Tuesday at the cheap end of talk to yield 6% with an initial conversion premium of 100%.
The convertibles were offered at par. They were talked at an initial conversion premium of 5.75% to 6% and an initial conversion premium of 100%.
The size of the deal was originally $1.8 billion with an additional $400 million over-allotment option. The greenshoe is now a further $200 million.
Morgan Stanley was the bookrunner of the Rule 144A offering.
The convertibles are non-callable and may not be put.
There is a contingent conversion trigger at 130% of the conversion price.
The convertibles have dividend and takeover protection.
There will be a net-share settlement option.
Advanced Micro Devices, a Sunnyvale, Calif.-based maker of computer processor chips, said it will use the proceeds of the deal to fund capped call transactions that have a cap price of $42.12 per share and a strike price of $28.08. At least $500 million of the proceeds will be used to repay part of a term loan from Morgan Stanley Senior Funding incurred in Advanced Micro Devices' acquisition of ATI Technologies Inc. The remainder of the proceeds will be used for general corporate purposes.
| Issuer: | Advanced Micro Devices Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Morgan Stanley
|
| Amount: | $2 billion
|
| Greenshoe: | $200 million
|
| Maturity: | May 1, 2015
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 100%
|
| Conversion price: | $28.08
|
| Conversion ratio: | 35.6125
|
| Contingent conversion: | 130%
|
| Net-share settlement option: | Yes
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Capped call price: | $42.12
|
| Capped call strike price: | $28.08
|
| Price talk: | 5.75%-6%, up 100%
|
| Pricing date: | April 24, before the open
|
| Settlement date: | April 30
|
| Distribution: | Rule 144A
|
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