AMD raises $1.48bn following notes sale

[lonewolfxix]

AMD raises $1.48bn following notes sale

Keeping up with Intel and buying out GPU makers is an expensive business, one that's seen AMD go through a lot of cash. It's got debts to pay, but has just raised nearly $1.5bn from the sale of convertible senior notes.

Last week it was reported that AMD would be selling the notes, with an interest rate of 5.75%, due in 2012. Today comes news through the Associated Press that AMD has made the sale, reaping $1.48bn after expenses.

AMD recently paid off its loan to Morgan Stanley - the one it used to buy out ATI - taking on other debts with lower interest rates. The Morgan Stanley loan incurred interest expenses of $125m a year, so AMD will be glad to ease that a little.

Despite the interest cutting moves, the company is still getting through a lot of cash. An analyst told Market Watch last week that "AMD should have enough cash to get through the remainder of the year", but it'd probably have to "tap the credit markets again by the spring of 2008 to shore up its balance sheet, due to its high cash-burn rate."

AMD's also trying to sell old fabs and bits of its business like shares in Spansion.

The chip wars rage on, and AMD seems to be keeping on top of its finances, even if it does still owe a shed-load of money.

Source: Hexus.net: AMD raises $1.48bn following notes sale