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AMD begins tender offer and consent solicitation for 8 1/8% notes
By Marisa Wong
Madison, Wis., June 2 - Advanced Micro Devices, Inc. said it began a cash tender offer for any and all of its outstanding 8 1/8% senior notes due 2017 on Monday.
AMD is also soliciting consents from noteholders to amend the terms of the 8 1/8% notes to reduce the minimum notice period required for redemption of the notes to 3 business days from 30 days.
The tender offer will expire at midnight ET on June 27.
Holders who tender their notes on or prior to the expiration time will be entitled to receive $1,025.88 for each $1,000 principal amount of notes, plus accrued interest to but excluding the payment date.
Holders who tender their notes and consent to the proposed amendments by midnight ET on June 13, the consent payment date, will also receive $20.00 for each $1,000 principal amount, resulting in a total consideration of $1,045.88 for each $1,000 of notes.
Upon receiving the required consents to approve the amendments, AMD will enter into a supplemental indenture to amend the terms of the indenture governing the 8 1/8% notes.
Tenders may be withdrawn at any time prior to the earlier of the effective time of the supplemental indenture or midnight ET on June 13.
AMD intends to finance the tender offer using proceeds from a separately announced private offering of $400 million of senior notes due 2024.
To the extent the proceeds from the new 2024 notes are not enough to redeem the 8 1/8% notes, the company intends to use cash on hand, including the remaining proceeds from its February offering of its 6¾% senior notes due 2019.
The tender is conditioned upon closing of the new notes offering.
J.P. Morgan Securities LLC (800 245-8812 or 212 270-1200) is the dealer manager for the tender offer and solicitation agent for the consent solicitation. MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500) is the information agent and depositary.
AMD is a Sunnyvale, Calif.-based semiconductor manufacturer.
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