Feeds

AMD tells Wall Street: 'Will dance for cash'

$2.2bn for the poor, please sir

Choosing a cloud hosting partner with confidence

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. ®

Security for virtualized datacentres

More from The Register

next story
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
NATO declares WAR on Google Glass, mounts attack alongside MPAA
Yes, the National Association of Theater Owners is quite upset
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.