Tuesday, November 12th 2013
AMD Announces Closing of $500 Million Secured Revolving Line of Credit
AMD today announced that the company and its subsidiary, AMD International Sales & Service, Ltd. (collectively, the "Borrowers"), have entered into a loan and security agreement for a principal amount up to $500 million (the "Secured Revolving Line of Credit") with a group of lenders and Bank of America, N.A. acting as agent for the lenders. The proceeds of the Secured Revolving Line of Credit may be used for general corporate purposes, including working capital needs. Availability under the Secured Revolving Line of Credit is limited to a borrowing base of 85% of eligible accounts receivable, less certain reserves. The obligations under the Secured Revolving Line of Credit are secured by the Borrowers' accounts receivable and inventory. The five-year Secured Revolving Line of Credit will mature on November 12, 2018. No drawings were made under the Secured Revolving Line of Credit on the closing date of the loan agreement.
"We have made significant progress during the last year strengthening our capital structure to support our strategic growth plans," said Devinder Kumar, AMD senior vice president and chief financial officer. "We expect to end the fourth quarter of 2013 with cash, cash equivalents and marketable securities, including long-term marketable securities, balances of approximately $1.2 billion and remain committed to maintaining ongoing balances of approximately $1.1 billion, our target optimal level. This secured revolving line of credit provides AMD with greater financial flexibility as we continue transforming AMD for growth across a more diverse set of markets."
"We have made significant progress during the last year strengthening our capital structure to support our strategic growth plans," said Devinder Kumar, AMD senior vice president and chief financial officer. "We expect to end the fourth quarter of 2013 with cash, cash equivalents and marketable securities, including long-term marketable securities, balances of approximately $1.2 billion and remain committed to maintaining ongoing balances of approximately $1.1 billion, our target optimal level. This secured revolving line of credit provides AMD with greater financial flexibility as we continue transforming AMD for growth across a more diverse set of markets."
35 Comments on AMD Announces Closing of $500 Million Secured Revolving Line of Credit
We are much better than USA's economy because our spending is transparent, as with most EU countries.
USA have put into law that certain money can legally go unaccounted for if it relates to national security. So citizens can't even complain.
In regards to this AMD story, I can see why they were allowed to borrow this money. AMD employees in the tens of thousands, maybe hundreds of thousands. Nobody wants to add to USAs unemployment rate or the foreign unemployment rate of India and China where AMD have many employees. AMD is finally do well financially so the stimulus worked.
As far as AMD is concerned they have definitely "turned the corner" to a better financial future. Kaveri, HUMA and HSA have created a historic and monumental change in the PC landscape that will surprise and please all. The more significant story however is that AMD has shown to industry leaders what this new tech can do and all of the big industry players are on board with the exception of AMD's competition Intel and Nvida who are going to be left out in the cold as the PC industry moves forward without them.
It's great to see AMD finally getting back on track and delivering superior performance products at fair prices unlike companies who do all that they can to exploit consumers.
someone explain to me how does a money really get its value?
For example:
US has 10 tonnes of gold
UK has 5 tonnes of gold
The US has 10 printed dollars, and the UK has 10 printed pounds. The UK's pounds are worth half of the US's dollars because each pound is representing less gold than the dollar. 1 dollar is representing 1 tonne of gold, while 1 pound is representing half a tonne of gold.
However, if the US then had 20 printed dollars, they would be worth the same as a pound, as each dollar would then be representing half a tonne of gold.
The unemployment issue at least in the UK is more to do with job creation. We have one of the highest concentrate of degree holding young people in a decade but they have no jobs or are doing low paid jobs. So the government has to support them via benefits or subsidised their income. Rising cost of living in the UK raising above wages means the few employed and qualified young people will still need government assistance. This is the main drain on our economy.Asia does very little importation. Most of their GDP is from exporting to the outside world. USA, Europe and the rest of the world rely on Asia to manufacture those consumerisms.
I agree overall there has been little recovery in a decade, its definitely increasing slowly but at a rate which is more steady. I guess anything that isn't a decline is a good sign.I agree, at one point I thought AMD was going to fail. They have came leaps and bounds over the last few years.
From what I understand it's basicly a promise that a certain amount of money is that much money. Then it gets complicated with inflation, currency trading and why a nation has a certain value and how it ties to the currency... It's really rather complicated and that's the reason the top dog finance guys are stinking rich.
RCoon, example is how it works in theory but its way more complicated than that. A lot of it is guesswork and assigning money virtually due to virtual money transactions . We don't really deal with physical assets (gold) day to day anymore, everything is digital.
Everyone watch the documentary. Watched it twice in the past and its still confusing. I have a real gap in my knowledge in this area.
People should stop with the whole EU, USA, Asia comparisons and saying who's the worst and who's the best.
There is no such thing anymore because all three of us rely on each other. So if there are problems in the EU there will be problems in the USA and in Asia, it's all connected and simply saying you guys are the worst is ridiculous.
The big corporations/governments did/do very very dirty things everywhere so you aren't doing any favours to yourself or to your country when you're saying that the other one is worse than you when in fact by saying that you're backing up the shady things that go on in your own country.
Back on topic: if the said bank is a private bank does it need the government permission for really really high amounts of money to lend? I'm not sure how the system works over there...
The Federal Reserve System is the USA's federal/central bank.
$500 million is a lot of money but it is far from the biggest loan ever issued.
Now its based on the credit worthy dollar and political/military power of the US.
Europe is in the same boat as the US in terms of debt and finance, a few countries (same as some of our states) float the countries like Greece and Italy ( not the same as states in the south where hillbillies and racist republicans live) that can't afford to make it due to trade differences.
Sure would be nice if we had a global government that used the highest producing areas to make sure the whole of humanity was fed and taken care of and allowed people to pursue their dream jobs instead of us all slaving for the top 1% to shit down fractions of their worth and then blame us all for the way things are, while we watch them on TV and dream of making it big and congratulating them for screwing us over so bad.
Bank Of America holds 1,224,904 shares of AMD