AMD 2000 Annual Report Download - page 411

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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Average daily borrowings 1,056 5,441
Maximum amount outstanding at any month-end 4,720 6,166
Weighted-average interest rate 1.26% 0.76%
Average interest rate on amounts outstanding at year-end - 0.78%
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Interest rates on foreign and short-term domestic borrowings are negotiated at
the time of the borrowing.
On July 6, 2000, the Company announced a cash tender offer and consent
solicitation for the outstanding $400 million aggregate principal amount of the
11% Senior Secured Notes due 2003. On August 2, 2000, the Company repurchased
$356 million of these notes at a premium of $36 million. This amount has been
recorded as an extraordinary loss of approximately $23 million net of tax
benefit of $13 million.
Information with respect to the Company's long-term debt, capital lease
obligations and other at year-end is:
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(Thousands) 2000 1999
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6% Convertible Subordinated Notes with interest payable semiannually and
principal due in April 2005 $ 517,140 $ 517,500
11% Senior Secured Notes with interest payable semiannually and principal due
on August 1, 2003, secured by the Fab 25 facility and equipment 43,066 400,000
Term loans under the Dresden Loan Agreement with a weighted-average interest
rate of 5.39% and principal due between February 2001 and December 2004,
secured by the Dresden Fab 30 facility and equipment 375,226 270,374
Obligations under capital leases 15,874 27,805
Commercial mortgage with principal and 9.88% interest payable in monthly
installments through April 2007 1,357 1,532
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952,663 1,217,211
Other 344,880 257,697
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$ 1,297,543 $ 1,474,908
Less: current portion 129,570 47,626
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Long-term debt, capital lease obligations and other, less current portion $ 1,167,973 $ 1,427,282
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The Company's 1996 syndicated bank loan agreement (the Credit Agreement)
provided for a $150 million three-year secured revolving line of credit and a
$250 million four-year secured term loan. On June 25, 1999, the Company
terminated the secured revolving line of credit. On July 13, 1999, the Company
replaced the Credit Agreement with a new Loan and Security Agreement (the Loan
Agreement) with a consortium of banks led by Bank of America. On July 30, 1999,
the Company repaid the outstanding principal balance of $86 million on the
secured term loan and terminated the Credit Agreement. Under the Loan Agreement,
which provides for a four-year secured revolving line of credit of up to $200
million, the Company can borrow, subject to amounts which may be set aside by
the lenders, up to 85 percent of its eligible accounts receivable from Original
Equipment Manufacturers (OEMs) and 50 percent of its eligible accounts
receivable from distributors. The Company must comply with certain financial
covenants if the levels of domestic cash it holds decline to certain levels, or
the amount of
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Source: ADVANCED MICRO DEVIC, 10-K405, March 20, 2001