AMD Reportedly Seeks to Raise USD4-5B Through Bond Issuance
I'm LongbridgeAI, I can summarize articles.AMD is launching a four-part debt offering to raise $4-5 billion through senior unsecured notes maturing in 2029, 2031, 2033, and 2036. Proceeds will be used for general corporate purposes, including potential debt repayment. This move supports AMD's expansion in AI and data center markets as it competes with NVIDIA and Intel.
US chipmaker Advanced Micro Devices, Inc. (AMD.US) on Thursday (13th) launched a four-part debt offering that could raise between USD4 billion and USD5 billion, Reuters reported, citing sources and reviewed term sheets. The offering includes senior unsecured notes due in 2029, 2031, 2033 and 2036.
Discussed initial prices were set at around 70 bps above US Treasuries for the three-year notes, 90 bps higher for the five-year tranche, 100 bps higher for the seven-year notes, and 115 bps higher for the 10-year debt. The company said it intends to use the proceeds for general corporate purposes, which may include debt repayment.
An AMD spokesperson said that AMD is committed to maintaining its strong financial balance sheet, and it has a strong investment-grade rating. It intends to use the net proceeds from the issuance for general corporate purposes.
AMD also filed documents related to the offering with the US Securities and Exchange Commission (SEC) earlier on Thursday, although the filing did not disclose specific transaction terms.
The debt sale comes as AMD continues expanding its AI and data center businesses, where it competes with larger rival NVIDIA Corporation (NVDA.US) and challenges Intel Corporation (INTC.US) across multiple processor markets.
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