AMD Announces Public Offerings of $600 Million of Common Stock and $450 Million of Convertible Senio

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AMD today announced that it intends to commence concurrent public offerings, subject to market and other conditions, of approximately $600 million of its common stock (the "Shares") and $450 million aggregate principal amount of its convertible senior notes due 2026 (the "New Notes"). AMD is offering all of the Shares and the New Notes. In addition, AMD expects to grant the underwriters a 30-day option to purchase up to approximately $90 million of additional shares of common stock at the public offering price and up to $67.5 million principal amount of additional convertible senior notes.

AMD intends to use net proceeds of $1,020 million received from the offerings to repay its borrowings under its credit facility and/or to purchase its outstanding senior notes. After the completion of a tender offer for its outstanding senior notes, AMD has the option, but not the obligation, to call any and all of the untendered 7.75 percent Senior Notes due 2020 with any remaining net proceeds. AMD will use any remaining net proceeds for capital expenditures, working capital and other general corporate purposes.
 
Bandalo said:
Can someone translate this into something Zen or Vega related?
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Hard to say, best to look at it from a company financial standpoint. This action will decrease their debt load and postpone their debt obligations until 2026. You can look at it this way, they are confident they will be still around pass 2020.
 
amd is trying to take the company from a publicly owned corp with shareholders to a privately owned company held by a few investors. That is actually a good thing for the corp. most investors will see that and know the price of shares are going to go up as people try and get the most out of their shares while AMD is trying to switch from a public corp to a private company, but they will be able to buy more with the sale of the non voting but likely dividing stock.

Once they buy up the senior notes or voting stock they can switch the public stock into bond notes and convert from a corp to a company. This tends to drive the value up before they delist themselves to focus on making a profit instead of a profit for a bunch of random stock holders. If the company fails before the transfer then the stock is not worth the paper it is printed on since the companies they owe money to would get acess to bid on the assets that the bankreupcy court decides are not need to get out of bankrupcy. If they are consolating the voting stock they likely have something new that they think is worth about twice the current value of their entire debt.
 
Will be interesting to see how this offering will go.

I have no idea if investors are interested.

Personally I consider AMD a very risky investment.
 
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Zarathustra[H] said:
Will be interesting to see how this offering will go.

I have no idea if investors are interested.

Personal I consider AMD a very risky investment.
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Their success and continued relevance hinges on two products that haven't been released yet...
 
Zarathustra[H] said:
Exactly. Quite the gamble, and judging by what we've seen thus far, of what the products will look like, not one I'd be willing to take, that's for sure.
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Well, Zen can beat Broadwell-E...as long as you downclock the BW-E by 20-25%.
 
Zarathustra[H] said:
Will be interesting to see how this offering will go.

I have no idea if investors are interested.

Personally I consider AMD a very risky investment.
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It's not a good thing for current investors, that's for sure.
 
drakken said:
amd is trying to take the company from a publicly owned corp with shareholders to a privately owned company held by a few investors. That is actually a good thing for the corp. most investors will see that and know the price of shares are going to go up as people try and get the most out of their shares while AMD is trying to switch from a public corp to a private company, but they will be able to buy more with the sale of the non voting but likely dividing stock.

Once they buy up the senior notes or voting stock they can switch the public stock into bond notes and convert from a corp to a company. This tends to drive the value up before they delist themselves to focus on making a profit instead of a profit for a bunch of random stock holders. If the company fails before the transfer then the stock is not worth the paper it is printed on since the companies they owe money to would get acess to bid on the assets that the bankreupcy court decides are not need to get out of bankrupcy. If they are consolating the voting stock they likely have something new that they think is worth about twice the current value of their entire debt.
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Question - if someone owns shares at a time when that company de-lists, what happens to the shares?
 
People are looking for any reason to kill AMD in their heads, lol.

This could mean any number of things. Yes, it could mean they are preparing for bankruptcy. But it could also mean they are intending to take AMD private and off the market. The most likely is that by getting rid of half their debt, they now have more flexibility in having other Fabs supplement Global Foundries in the event GloFlo fucks up again in order to keep Zen production going, and make sure there are no shortages.

It could be an indicator of their supreme confidence in Zen to be a game changer.
 
Bandalo said:
Their success and continued relevance hinges on two products that haven't been released yet...
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They make chips for the major consoles.
Their foothold has revived a wee bit with the well received RX480 and RX470.

It may be a bit extreme to say all success hinges on two unreleased products. All success of any company depends on the quality of future released products - but it's not like AMD doesn't have any irons in the fire right now.
 
Archaea said:
They make chips for the major consoles.
Their foothold has revived a wee bit with the well received RX480 and RX470.

It may be a bit extreme to say all success hinges on two unreleased products. All success of any company depends on the quality of future released products - but it's not like AMD doesn't have any irons in the fire right now.
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That's very true...I should have said their relevance in the PC (both gaming and servers) market will hinge on Zen and Vega. They've locked up things for the next-gen consoles so they will have that income for quite a while.

The RX480 is a good card, for the price. Their CPUs are good choices, for the price. They've repeatedly said they don't want to be the "value" company anymore, and they want to compete on the top end. Look at all the marketing they did for Fury X and their previous-gen CPUs. They need Zen and Vega to be successful so they have enough R&D to keep working on what comes next. Without that, they'll always be the "value" guys.
 
Archaea said:
They make chips for the major consoles.
Their foothold has revived a wee bit with the well received RX480 and RX470.

It may be a bit extreme to say all success hinges on two unreleased products. All success of any company depends on the quality of future released products - but it's not like AMD doesn't have any irons in the fire right now.
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But their margins from consoles and RX400 series are low, while it be enough to keep them alive for the time being, they would just stagnant into obscurity if they cannot generate sustainable profit where they can reinvest into their own company.
 
I still think the issue is that Raja is dealing with the crap designs of before he came on board, given how Hector Ruiz killed much of the R&D divisions.

I think "Vega" will have some issues - it's the last card part of the "Islands" architecture (before they rebranded it) and if the same engineers who delivered the underperforming Polaris designed this, then I don't think we are going to see a real competition at the high end until Navi, which will be the first card completely overseen by Raja. I think at this point, they are still trying to figure out the best way to make lemonade out of lemons.

That being said, no one is saying that Raja is a good card engineer (or has good people around him) - its just still an unknown until Navi is in the books. Likewise, Vega could be great - the old "blind squirrel/nut" cliché.

Long term, we just won't know what's up with AMD's graphics division until Navi comes to light, imho.
 
amd may have a shot at a partial comeback in the server space if their zen chips match the rumored specs. They dont even need to be faster than intel's offerings. if the zen chips really have 64+ x16 3.0 lanes each (and maybe more depending on news source), intel has nothing in this space. Their best xeon is 44lanes pcie x16. Now that everything is moving over to pcie, and even the fastest ssd's are getting faster, requireing more pcie bandwidth, pcie is even more important.
If server zen comes in less expensive and significantly more lanes than intel, there could be some shakeups in the server space, especially with companies that want the fastest deep learning boxes and render machines.
Then again, intel's xpoint is rumored to potentially replace storage and memory entirely....
shit's crazy
 
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