New Issue: Advanced Micro Devices $500 million convertibles at 4.75% yield, up 40%

By Ronda Fears

Nashville, Tenn., Jan. 24 - Advanced Micro Devices Inc. sold $500 million of 20-year convertible notes at par to yield 4.75% with a 40% initial conversion premium. Joint book-running lead managers of the overnight Rule 144A deal were Credit Suisse First Boston and Salomon Smith Barney.

The issue sold at the cheap end of pricing guidance that put the yield at 4.25% to 4.75% yield and the premium between 40% and 45%.

The Sunnyvale, California-based semiconductor manufacturer said proceeds for would be used for capital expenses, working capital and general corporate purposes

Terms of the new deal are:

Issuer: Advanced Micro Devices Inc.

Amount: $500 million

Greenshoe: $100 million

Lead Managers: Credit Suisse First Boston and Salomon Smith Barney

Maturity Date: Feb. 1, 2022

Coupon: 4.75%

Issue Price: par

Yield: 4.75%

Conversion Premium: 40%

Conversion Price: $23.38

Conversion Ratio: 42.7716

Call: non-callable for three years, but with 130% trigger in first year

Put: in years seven, 10 and 15

Settlement Date: Jan. 29

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