AMD 2009 Annual Report Download - page 115

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NOTE 10: Debt
Long-term Borrowings and Obligations
The Company’s long-term debt and capital lease obligations as of December 26, 2009 and December 27,
2008 consist of:
2009 2008
(In millions)
7.75% Senior Notes Due 2012 ................................. $ — $ 390
5.75% Convertible Senior Notes due 2012 ........................ 485 1,500
6.00% Convertible Senior Notes due 2015 ........................ 1,641 1,928
8.125% Senior Notes due 2017 ................................. 449 —
Fab 36 Term Loan ........................................... 460 705
Repurchase obligations to Fab 36 Partners ........................ — 28
GF Class A Subordinated Convertible Notes ...................... 254 —
GF Class B Subordinated Convertible Notes ...................... 1,015 —
Capital lease obligations ...................................... 256 225
4,560 4,776
Less: current portion ......................................... 308 286
Long-term debt and capital lease obligations, less current portion ...... $4,252 $4,490
7.75% Senior Notes Due 2012
On October 29, 2004, the Company issued $600 million of 7.75% Senior Notes due 2012 (the 7.75% Notes).
In 2006, the Company redeemed $210 million of the aggregate principal amount outstanding of the 7.75%
Notes. In 2009, the Company redeemed the remaining $390 million of the aggregate principal amount
outstanding of the 7.75% Notes for $398 million. The Company recorded a loss on redemption of approximately
$11 million, which is recorded in “Other income (expense), net” in its 2009 consolidated statement of operations.
5.75% Convertible Senior Notes due 2012
On August 14, 2007, the Company issued $1.5 billion aggregate principal amount of 5.75% Convertible
Senior Notes due 2012 (the 5.75% Notes). The 5.75% Notes are general unsecured senior obligations of the
Company. The 5.75% Notes bear interest at 5.75% per annum. Interest is payable in arrears on February 15 and
August 15 of each year beginning February 15, 2008 until the maturity date of August 15, 2012.
In 2009, the Company repurchased $1,015 million in aggregate principal amount of its outstanding 5.75%
Notes for $1,002 million. The Company recorded a net gain on redemption of approximately $6 million, which is
recorded in “Other income (expense), net” in its 2009 consolidated statement of operations.
The remaining 5.75% Notes will be convertible, in whole or in part, at any time prior to the close of
business on the business day immediately preceding the maturity date of the 5.75% Notes, into shares of the
Company’s common stock based on an initial conversion rate of 49.6771 shares of common stock per $1,000
principal amount of the 5.75% Notes, which is equivalent to an initial conversion price of approximately $20.13
per share. This initial conversion price represents a premium of 50% relative to the last reported sale price of the
Company’s common stock on August 8, 2007 (the trading date preceding the date of pricing of the 5.75% Notes)
of $13.42 per share. This initial conversion rate will be adjusted for certain anti-dilution events. In addition, the
conversion rate will be increased in the case of corporate events that constitute a fundamental change (as defined
in the 5.75% Indenture) of AMD under certain circumstances. Holders of the 5.75% Notes may require the
Company to repurchase the 5.75% Notes for cash equal to 100% of the principal amount to be repurchased plus
accrued and unpaid interest upon the occurrence of a fundamental change (as defined in the 5.75% Indenture) or
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