AMD to raise up to $2.2 billion in debt offering
After losing a net total of nearly $1.2 billion over the past two quarters, AMD has announced that it intends to raise as much as $2.2 billion as part of a debt offering—a move similar to a private business loan. As Forbes reports, AMD will sell $1.8 billion worth of convertible notes and give buyers a 30-day option to buy an extra $400 million in order to "cover up any over-allotments." Along with padding AMD's wallet, Forbes says this move might also quell speculation that AMD is subject to buyout interest from private equity firms.
AMD's subsequent losses have left it with $1.167 billion in cash, which according to ExtremeTech is insufficient, as the firm needs $2 billion this year alone to fund its fab expansion plan. AMD also needs cash to fund its acquisition of ATI, which added up to a cash sum of $4.2 billion. According to EE Times, AMD intends to use $500 million from the proceeds of the debt offering to that end. (Thanks to TR reader Carl for the tip.)