AMD 2001 Annual Report Download - page 244

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7: DEBT
Significant elements of notes payable to banks are:
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(Thousands except percent) 2001 2000
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Amounts available under notes payable to bank:
Three-year secured notes payable to bank $ 150,000 $ 200,000
Lines of credit available to foreign subsidiaries 4,251 24,419
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Total amounts available at year-end under notes payable to banks $ 154,251 $ 224,419
Amounts outstanding at year-end under notes payable to banks 63,362 -
Weighted average interest rate on amounts outstanding at year-end 5.23% -
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Interest rates on foreign and short-term domestic borrowings are negotiated at
the time of the borrowing.
On July 13, 1999, the Company entered into a Loan and Security Agreement (the
Loan Agreement) with a consortium of banks led by a domestic financial
institution. 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
declines to $200 million, or the amount of borrowing under the Loan Agreement
rises to 50 percent of available credit. The Company's obligations under the
Loan Agreement are secured by a pledge of all of its accounts receivable,
inventory, general intangibles and the related proceeds. As of December 30,
2001, the Company had $50 million outstanding under the Loan Agreement, which
was repaid in January of 2002. The Loan Agreement restricts the Company from
paying cash dividends on its common stock.
Information with respect to the Company's long-term debt, capital lease
obligations and other at years ended 2001 and 2000 is:
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(Thousands) 2001 2000
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6% Convertible Subordinated Notes with interest payable semiannually and
principal due in April 2005 $ - $ 517,140
11% Senior Secured Notes with interest payable semiannually and principal due on
August 1, 2003, secured by the Fab 25 property, facility and equipment - 43,066
Term loans under the Dresden Loan Agreements with a weighted-average interest
rate of 5.72% and principal due between February 2001 and December 2005,
secured by the Dresden Fab 30 property, facility and equipment 602,046 375,226
Obligations under capital leases 32,469 15,874
Commercial mortgage with principal and 9.88% interest payable in monthly
installments through April 2007 1,190 1,357
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635,705 952,663
Other 305,576 344,880
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$ 941,281 $ 1,297,543
Less: current portion 268,336 129,570
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Long-term debt, capital lease obligations and other, less current portion $ 672,945 $ 1,167,973
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In May 1998, the Company sold $517.5 million of Convertible Subordinated Notes
due May 15, 2005 (Convertible Subordinated Notes) under its $1 billion shelf
registration declared effective by the Securities and Exchange Commission on
April 20, 1998. Interest on the Convertible Subordinated Notes accrued at the
rate of six percent per annum and was payable semiannually in arrears on May 15
and November 15 of each year, commencing November 15, 1998. On May 21, 2001, the
Company called for redemption all of the then outstanding $517.1 million of
these Convertible Subordinated Notes due 2005, which resulted in the conversion
of $509.6 million of such Notes into approximately 28 million shares of the
Source: ADVANCED MICRO DEVIC, 10-K, March 07, 2002