Feeds

AMD tells Wall Street: 'Will dance for cash'

$2.2bn for the poor, please sir

Boost IT visibility and business value

Cash-starved AMD put out its hat on Monday, offering up to $2.2bn in convertible notes to help it raise money.

The chipmaker will proffer $1.8bn worth of Convertible Senior Notes to institutional investors. In addition, AMD expects to bless the buyers with a 30-day option to nab up to $400m of extra notes “to cover over allotments.” AMD just exited the first quarter with $1.2bn in cash – a figure that's $600m more than its “minimal acceptable levels,” according to company executives.

Analysts have been hounding AMD about its cash position in recent months, as the company struggles to deal with a resurgent Intel and internal disorder. AMD's woes resulted in it posting a $600m first quarter loss.

The company plans to use at least $500m of the fresh cash to pay back a portion of the $2.5bn loan used to acquire ATI.

“AMD expects to use any amounts not applied to the repayment of the term loan for general corporate purposes, including working capital and capital expenditures,” the company said in a statement.

While very vague, management last week pledged to cut costs across the company, including pulling back on some Fab work and reducing headcount.

AMD might not have been in this position if it hired CNET editor Michael Kanellos as an adviser. ®

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.