Feeds

AMD tells Wall Street: 'Will dance for cash'

$2.2bn for the poor, please sir

Top 5 reasons to deploy VMware with Tegile

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.