AMD plans to raise another $1.5-$1.725 billion
Back in April, AMD revealed plans to raise up to $2.2 billion as part of a debt offering. In other words, the company was raising money in order to stay afloat after losing almost $1.2 billion over the fourth quarter of 2006 and the first quarter of 2007.
Well, AMD recently announced another net loss of $600 million for the second quarter, and the company now says it intends to raise another $1.5 billion by selling convertible senior notes. Buyers have a 30-day option to purchase an additional $225 million's worth of notes, which should help pad AMD's wallet with a total of up to $1.725 billion. AMD says the money will be used to repay the outstanding balance of the $2.5 billion loan it obtained from Morgan Stanley Senior Funding back in October 2006. The loan was used to fund the acquisition of ATI.