AMD takes in no more tenders since early date in offer for four notes

By Susanna Moon

Chicago, Oct. 7 – Advanced Micro Devices Inc. said it has accepted no more tenders since the early deadline in the offer for its 6¾% senior notes due 2019, 7¾% senior notes due 2020, 7½% senior notes due 2022 and 7% senior notes due 2024.

In the end, holders had tendered $404,219,000 of the 6¾% notes, $241,954,000 of the 7¾% notes, $342,308,000 of the 7½% notes and $358,662,000 of the 7% notes, according to a company update.

AMD planned to accept for purchase $795.95 million principal amount of notes tendered by 5 p.m. ET on Sept. 22, the early tender date.

The issuer began the tender on Sept. 9 for a payment of up to $1,035,000,000 for the four series of notes with a cap of $25 million principal amount for each of the 7½% and 7% notes.

Of the early tendered notes, AMD said it accepted for purchase on Sept. 23 all of the 6¾% notes and 7¾% notes, $125 million of the 7½% notes using a proration factor of 36.6% and $25 million of the 7% notes using a proration factor of 7%.

After early settlement on Sept. 23, there was left outstanding $196,004,000 of the 6¾% notes, $208,046,000 of the 7¾% notes, $350 million of the 7½% notes and $475 million of the 7% notes.

AMD dropped the maximum tender amount to $848 million on Sept. 23 and raised the tender cap for its 7½% notes to the amount purchased.

The company also obtained the needed consents to amend its 7¾% notes in order to reduce the minimum notice period for a redemption of the notes to three business days from 30 days.

As of the early deadline, holders had tendered $241,954,000 principal amount, or 53.77%, of the 7¾% notes and given the related consents, which was enough to amend the notes.

AMD redeemed the 7¾% notes that remained outstanding after the early settlement date on Sept. 28.

As previously announced, the company was offering the following amounts for notes tendered by the early deadline, with the securities listed in order of priority:

• $1,090.00 per $1,000 principal amount for the 6¾% notes;

• $1,027.08 per $1,000 principal amount for the 7¾% notes;

• $1,070.00 per $1,000 principal amount for the 7½% notes; and

• $1,030.00 per $1,000 principal amount for the 7% notes.

All the prices include an early tender premium of $50.00 per $1,000 principal amount of notes tendered by the early deadline.

The tender ended at midnight ET at the end of the day on Oct. 6.

AMD will also pay accrued interest up to but excluding the settlement date.

Funding from the tender will come from AMD’s recently priced $600 million sale of common stock and $700 million sale of 2.125% convertible senior notes due 2026.

J.P. Morgan Securities LLC (866 834-4666), Barclays (800 438-3242) and Credit Suisse Securities (USA) LLC (800 820-1653) are dealer managers for the tender offers and solicitation agents for the consent solicitation.

D.F. King & Co., Inc. (800 290-6433) is tender agent and information agent.

AMD is a Sunnyvale, Calif., maker of semiconductors.

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