AMD 2013 Annual Report Download - page 67

7.50% Senior Notes Due 2022
On August 15, 2012, we issued $500 million of our 7.50% Notes. Our 7.50% Notes are our general
unsecured senior obligations. Interest is payable on February 15 and August 15 of each year beginning
February 15, 2013 until the maturity date of August 15, 2022. Our 7.50% Notes are governed by the terms of an
indenture dated August 15, 2012 between us and Wells Fargo Bank, N.A., as trustee.
As of December 28, 2013, the outstanding aggregate principal amount of our 7.50% Notes was $500
million.
See Note 11 of “Notes to Consolidated Financial Statements” below, for additional information regarding
our 7.50% Notes.
Potential Repurchase of Outstanding Notes
We may elect to purchase or otherwise retire our 6.00% Notes, 8.125% Notes, 7.75% Notes and 7.50%
Notes with cash, stock or other assets from time to time in open market or privately negotiated transactions,
either directly or through intermediaries, or by tender offer when we believe the market conditions are favorable
to do so. Subsequent to December 28, 2013, we repurchased an additional $64 million in principal amount of our
6.00% Notes (which is a portion of our outstanding 6.00% Notes).
Secured Revolving Line of Credit
On November 12, 2013, we and our subsidiary, AMD International Sales & Service, Ltd. (together, the
Borrowers), entered into a loan and security agreement (the Loan Agreement) for our Secured Revolving Line of
Credit for a principal amount up to $500 million, with up to $75 million available for issuance of letters of credit,
with a group of lenders and Bank of America, N.A., acting as agent for the lenders (the Agent). Our Secured
Revolving Line of Credit matures on November 12, 2018. Borrowings under our Secured Revolving Line of
Credit are limited to up to 85% of eligible account receivable minus certain reserves and may be used for general
corporate purposes, including working capital needs.
The Borrowers can elect that the borrowings under our Secured Revolving Line of Credit may bear interest
at a rate per annum equal to (a) London Interbank Offered Rate (LIBOR) plus an applicable margin ranging from
2.00% to 2.75%, or (b) (i) the greater of (x) the Agent’s prime rate, (y) the federal funds rate as published by the
Federal Reserve Bank of New York plus 0.50%, and (z) LIBOR for a one-month period plus 1.00%, plus (ii) an
applicable margin ranging from 1.00% to 1.75%. The applicable margin to be applied to the borrowings under
our Secured Revolving Line of Credit is dependent on the Borrowers achieving a certain fixed charge coverage
ratio. Our Secured Revolving Line of Credit may be optionally prepaid or terminated or unutilized commitments
may be reduced, in each case at any time without premium or penalty. In connection with our Secured Revolving
Line of Credit, the Borrowers are required to pay an unused line fee equal to 0.50% per annum, payable monthly
on the unused amount of the commitments under our Secured Revolving Line of Credit. The unused line fee
decreases to 0.375% per annum when more than 50% of our Secured Revolving Line of Credit is utilized. The
Borrowers will pay (i) a monthly fee on all letters of credit outstanding under our Secured Revolving Line of
Credit equal to the applicable LIBOR margin and (ii) a fronting fee to the Agent equal to 0.125% of all such
letters of credit, payable monthly in arrears.
The obligations under the Loan Agreement are secured by a first priority basis in the Borrowers’ account
receivable, inventory and certain deposit accounts and specified related assets.
The Loan Agreement contains covenants that place certain restrictions on the Borrowers’ ability to, among
other things, amend or modify certain terms of any debt of $50 million or more or subordinated debt, create or
suffer to exist any liens upon accounts or inventory, sell or transfer any of Borrowers’ accounts or inventory
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