AMD 2014 Annual Report Download - page 100

other than certain ordinary-course transfers, make certain changes to either Borrower’s name or form or state of
organization without notifying the Agent, or liquidate, dissolve, merge, combine or consolidate. Further
restrictions apply during a domestic cash trigger period (a Domestic Cash Trigger Period), which occurs (i) upon
an event of default or (ii) when the amount of domestic cash or cash equivalents held in certain accounts is at any
time less than $250 million, as amended in 2014, and ends when both (a) no event of default has existed for
45 days and (b) the amount of domestic cash or cash equivalents held in such accounts has been equal to or
greater than $250 million, as amended during 2014, for 45 days. Such restrictions limit the Borrowers’ ability to,
among other things, allow certain subsidiaries that manufacture or process inventory for the Borrowers to borrow
secured debt or unsecured debt beyond a certain amount, create any liens upon any of the Borrowers’ property
(other than customary permitted liens and liens on up to $1.5 billion of secured credit facilities debt (which
amount includes the Secured Revolving Line of Credit)), declare or make any distributions, create any
encumbrance on the ability of a subsidiary to make any upstream payments, make asset dispositions other than
certain ordinary course dispositions, make certain loans, make payments with respect to subordinated debt or
certain borrowed money prior to its due date, become a party to certain agreements restricting the Borrowers’
ability to incur or repay debt, grant liens, make distributions, or modify loan agreements or enter into any
non-arm’s-length transaction with an affiliate.
During a Domestic Cash Trigger Period, the Borrowers are subject to financial covenants requirement and
are required to maintain a fixed charge coverage ratio of 1:1 for each trailing four-fiscal quarter period ending on
and after March 29, 2014.
At December 27, 2014, the Secured Revolving Line of Credit had an outstanding loan balance of $130
million, with an interest rate of 4.25%, as amended during 2014, $6 million related to outstanding Letters of
Credit, and up to $364 million available for future borrowings. As of December 27, 2014, the Company was in
compliance with all required covenants stated in the Loan Agreement.
The agreements governing the 6.00% Notes, 6.75% Notes, 7.75% Notes, 7.50% Notes, 7.00% Notes and the
Secured Revolving Line of Credit contain cross-default provisions whereby a default under one agreement would
likely result in cross defaults under agreements covering other borrowings. The occurrence of a default under any
of these borrowing arrangements would permit the applicable note holders or the lenders under the Secured
Revolving Line of Credit to declare all amounts outstanding under those borrowing arrangements to be
immediately due and payable.
Capital Lease Obligations
As of December 27, 2014, the Company had aggregate outstanding capital lease obligations of $12 million
for one of its facilities in Canada, which is payable in monthly installments through 2017.
The gross amount of assets recorded under capital leases totaled approximately $23 million as of
December 27, 2014 and December 28, 2013, and is included in the related property, plant and equipment
category. Amortization of assets recorded under capital leases is included in depreciation expense. Accumulated
amortization of these leased assets was approximately $18 million and $16 million as of December 27, 2014 and
December 28, 2013, respectively.
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