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Wednesday, November 18, 2009
Advanced Micro Devices Plans $1 Million Buyback
FOXBusiness
Chip-maker Advanced Micro Devices (AMD) said Wednesday it will retire as much as $1 billion worth of senior convertible notes that are due in 2010. The company will offer the sale of $500 million in eight-year notes, and buy back $390 million in high-yield debt.
The company, whose stock is up 44% this month on the heels of the Intel (INTC) lawsuit settlement, is using funds from the $1.25 billion settlement to reduce its debt. The settlement also allows AMD to spin off its manufacturing unit into a separate company.
AMD has confirmed the $1 billion buyback will be paid for with money from the Intel settlement, along with the note sale. The offer of $990 per $1,000 of notes will expire on December 16.
AMD said that after the buyback is complete, debt could slashed by $890, and could be lowered to $485 million by 2012.
Shares of AMD are up 10% at $7.27.
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