New Issue: Advanced Micro Devices sells $600 million eight-year notes to yield 7¾%

By Paul A. Harris

St. Louis, Oct. 22 - Advanced Micro Devices Inc. sold $600 million of eight-year senior notes (B3/B-/B-) at par to yield 7¾% on Friday, according to a syndicate source.

Price talk was 7½% to 7¾%.

Citigroup ran the books for the Rule 144A/Regulation S issue. The co-managers were Credit Suisse First Boston, Merrill Lynch & Co. and Morgan Stanley.

Proceeds, together with existing cash, will be used to prepay the existing term loan of the company's indirect wholly owned German subsidiary, AMD Saxony LLC & Co. KG.

Advanced Micro Devices is a Sunnyvale, Calif.-based microchip maker.

Issuer:	Advanced Micro Devices Inc.
Amount:	$600 million
Maturity:	Nov. 1, 2012
Security description:	Senior notes
Bookrunner:	Citigroup
Co-managers:	Credit Suisse First Boston, Merrill Lynch & Co., Morgan Stanley
Coupon:	7¾%
Price:	Par
Yield:	7¾%
Spread:	396 basis points
Call features:	Callable after Nov. 1, 2008 at 103.875, 101.938, par on or after Nov. 1, 2010
Equity clawback:	Until Nov. 1, 2007 for 35% at 107.75
Pricing date:	Oct. 22
Settlement date:	Oct. 29
Ratings:	Moody's: B3
	Standard & Poor's: B-
	Fitch: B-
Price talk:	7½%-7¾%

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