AMD to Offer $1.8 Billion in Senior Notes

Advanced Micro Devices, Inc. to Offer $1.8 Billion of Convertible Senior Notes

SUNNYVALE, Calif. - April 23, 2007 - Advanced Micro Devices, Inc. (NYSE:AMD) today announced its intention to offer, subject to market and other conditions, $1.8 billion aggregate principal amount of Convertible Senior Notes in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

Under certain circumstances, the notes are convertible into cash up to the principal amount and into shares of AMD's common stock with respect to any conversion value above the principal amount. The interest rate, conversion price and other terms of the notes will be determined by negotiations between AMD and the initial purchasers of the notes. AMD expects to grant to the initial purchasers a 30-day option to purchase up to $400 million aggregate principal amount of additional notes to cover over allotments.

In connection with the offering, AMD expects to enter into capped call transactions which are intended to reduce the potential dilution to AMD's common stockholders upon any conversion of the notes. The capped call transactions are expected to have a strike price that matches the conversion price of the convertible notes and we anticipate that the cap price in each capped call transaction will be approximately three times the closing price of our common stock on the date the capped call transactions are executed. READ MORE...

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