AMD 2003 Annual Report Download - page 38

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time. At this conversion price, each $1,000 principal amount of the 4.75% Debentures will be convertible into approximately 43 shares of our common stock.
Issuance costs incurred in the amount of approximately $14 million are amortized ratably, which approximates the effective interest method, over the term of the
4.75% Debentures, as interest expense.
Beginning on February 5, 2005, the 4.75% Debentures are redeemable by us for cash at specified prices expressed as a percentage of the outstanding
principal amount plus accrued and unpaid interest at our option, provided that we may not redeem the 4.75% Debentures prior to February 5, 2006, unless the last
reported sale price of our common stock is at least 130 percent of the then effective conversion price for at least 20 trading days within a period of 30 consecutive
trading days ending within five trading days of the date of the redemption notice.
The redemption prices for the specified periods are as follows:
Period
Price as
percentage of
principal amount
Beginning on February 5, 2005 through February 4, 2006 102.375%
Beginning on February 5, 2006 through February 4, 2007 101.583%
Beginning on February 5, 2007 through February 4, 2008 100.792%
Beginning on February 5, 2008 100.000%
We may elect to purchase or otherwise retire our bonds with cash, stock or assets from time to time in open market or privately negotiated transactions,
either directly or through intermediaries when we believe that market conditions are favorable to do so. Such purchases may have a material effect on our
liquidity, financial condition and results of operations.
4.50% Convertible Senior Notes Due 2007
On November 25, 2002, we sold $402.5 million of 4.50% Convertible Senior Notes Due 2007 (the 4.50% Notes) in a registered offering. Interest on the
4.50% Notes is payable semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2003. Beginning on December 4, 2005, the 4.50%
Notes are redeemable by us at our option for cash at specified prices expressed as a percentage of the outstanding principal amount plus accrued and unpaid
interest provided that we may not redeem the 4.50% Notes unless the last reported sale price of our common stock is at least 150 percent of the then effective
conversion price for at least 20 trading days within a period of 30 trading days ending within five trading days of the date of the redemption notice.
The redemption prices for the specified periods are as follows:
Period
Price as
percentage of
principal amount
Beginning on December 4, 2005 through November 30, 2006 101.8%
Beginning on December 1, 2006 through November 30, 2007 100.9%
On December 1, 2007 100.0%
The 4.50% Notes are convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding the
maturity date of December 1, 2007, unless previously redeemed or repurchased, into shares of common stock at a conversion price of $7.37 per share, subject to
adjustment in certain circumstances. At this conversion price, each $1,000 principal amount of the 4.50% Notes will be convertible into approximately 135
shares of our common stock. Issuance costs incurred in the amount of approximately $12 million are amortized ratably, over the term of the 4.50% Notes, as
interest expense, approximating the effective interest method.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004