New Issue: AMD prices $500 million 8 1/8% eight-year notes at 89.796 to yield 10%

By Paul A. Harris

St. Louis, Nov. 23 - Advanced Micro Devices, Inc. priced a $500 million issue of 8 1/8% eight-year senior unsecured notes (B2/B) at 89.796 to yield 10% on Monday, according to an informed source.

The yield printed on top of the yield talk. The issue price came in line with price talk specifying approximately 10 points of original issue discount.

J.P. Morgan Securities Inc. and Citadel Securities were joint bookrunners for the Rule 144A and Regulation S with registration rights notes.

Proceeds, along with existing cash, will be used to fund the tender for the Sunnyvale, Calif.-based computer technology company's 5¾% convertible senior notes due 2012. Remaining proceeds, if any, will be used for general corporate purposes.

Issuer:	Advanced Micro Devices, Inc.
Face amount:	$500 million
Proceeds:	$448.98 million
Maturity:	Dec. 15, 2017
Securities:	Senior unsecured notes
Bookrunners:	J.P. Morgan Securities Inc., Citadel Securities
Coupon:	8 1/8%
Price:	89.796
Yield:	10%
Spread:	687 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Dec. 15, 2013, then callable at 104.063, 102.031 par on and after Dec. 1, 2015 (On each interest payment date after the fifth anniversary of the issue date the company will redeem a portion of each note at par plus accrued interest to the extent necessary to prevent the notes from being "Applicable High Yield Discount Obligations" under regulations in the Internal Revenue Code)
Equity clawback:	35% at 108.125 until Dec. 15, 2012
Change-of-control put:	101%
Trade date:	Nov. 23
Settlement date:	Nov. 30
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	10% area with about 10 points OID

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