AMD 1997 Annual Report Download - page 83

ADVANCED MICRO DEVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
Information with respect to the Company's long-term debt and capital lease
obligations at year-end is:
1997 1996
-------- --------
(THOUSANDS)
11% Senior Secured Notes with interest payable
semiannually and principal on August 1, 2003........... $400,000 $400,000
Secured term loan with 7.56% interest payable quarterly
and principal payable quarterly from October 1998
through May 2000....................................... 250,000 --
Promissory notes with principal and 6.88% interest
payable annually through January 2000, secured by a
partnership interest................................... 6,577 8,489
Mortgage with principal and 9.88% interest payable in
monthly installments through April 2007................ 1,781 1,930
Obligations under capital leases........................ 68,997 58,631
Obligations secured by equipment........................ 1,668 3,388
Other................................................... 30 63
-------- --------
729,053 472,501
Less: current portion................................... (66,364) (27,671)
-------- --------
Long-term debt and capital lease obligations, less
current portion........................................ $662,689 $444,830
======== ========
On July 19, 1996, the Company entered into a syndicated bank loan agreement
(the Credit Agreement), which provided for a $400 million term loan and
revolving credit facility which became available concurrently with the sale of
the Senior Secured Notes. The Credit Agreement provided for a $150 million
three-year secured revolving line of credit (which can be extended for one
additional year, subject to approval of the lending banks) and a $250 million
four-year secured term loan, the latter of which the Company used fully in
January 1997. No balances were outstanding under the revolving line of credit
at December 28, 1997 or December 29, 1996.
For each of the next five years and beyond, long-term debt and capital lease
obligations are:
LONG-TERM DEBT CAPITAL
(PRINCIPAL ONLY) LEASES
---------------- -------
(THOUSANDS)
1998............................................... $ 37,176 $33,518
1999............................................... 126,370 19,052
2000............................................... 95,287 12,783
2001............................................... 167 6,539
2002............................................... 184 1,497
Beyond 2002........................................ 400,872 268
-------- -------
Total............................................ 660,056 73,657
Less: amount representing interest................. -- (4,660)
-------- -------
Total at present value........................... $660,056 $68,997
======== =======
Obligations under the lease agreements are collateralized by the assets
leased. Total assets leased were approximately $138 million and $134 million
at December 28, 1997 and December 29, 1996, respectively. Accumulated
amortization of these leased assets was approximately $85 million and $72
million at December 28, 1997 and December 29, 1996, respectively.
The above debt agreements limit the Company's and its subsidiaries' ability
to engage in various transactions and require satisfaction of specified
financial performance criteria. At December 28, 1997, the Company was in
compliance with all restrictive covenants of such debt agreements and all
retained earnings were restricted as to payments of cash dividends on common
stock.
F-18
Source: ADVANCED MICRO DEVIC, 10-K405, March 03, 1998