AMD 2003 Annual Report Download - page 36

Table of Contents
Notes Payable to Banks
On July 7, 2003, we amended and restated our 1999 Loan and Security Agreement with a consortium of banks led by a domestic financial institution (the
July 2003 Loan Agreement). We further amended the July 2003 Loan Agreement on October 3, 2003. The July 2003 Loan Agreement currently provides for a
secured revolving line of credit of up to $125 million that expires in July 2007. We can borrow, subject to amounts set aside by the lenders, up to 85 percent of
our eligible accounts receivable from OEMs and 50 percent of our eligible accounts receivable from distributors. As of December 28, 2003, no amount was
outstanding under the July 2003 Loan Agreement. We have to comply, among other things, with the following financial covenants if our net domestic cash (as
defined in the July 2003 Loan Agreement) declines below $125 million:
• restrictions on our ability to pay cash dividends on our common stock;
• maintain an adjusted tangible net worth (as defined in the July 2003 Loan Agreement) as follows:
Measurement Date Amount
December 31, 2003 $1.25 billion
Last day of each calendar quarter in 2004 $1.425 billion
Last day of each calendar quarter in 2005 $1.85 billion
March 31, 2006 and on the last day of each fiscal quarter thereafter $2.0 billion
• achieve EBITDA (earnings before interest, taxes, depreciation and amortization) according to the following schedule:
Period Amount
Four fiscal quarters ending December 31, 2003 $400 million
Four fiscal quarters ending March 31, 2004 $550 million
Four fiscal quarters ending June 30, 2004 $750 million
Four fiscal quarters ending September 30, 2004 $850 million
Four fiscal quarters ending December 31, 2004 $950 million
Four fiscal quarters ending March 31, 2005 and on each fiscal quarter thereafter $1,050 million
As of December 28, 2003, net domestic cash, as defined, totaled $567 million and the preceding financial covenants were not applicable. Our obligations
under the July 2003 Loan Agreement are secured by all of our accounts receivable, inventory, general intangibles (excluding intellectual property) and the related
proceeds, excluding FASL LLC’s accounts receivable, inventory, and general intangibles.
Contractual Cash Obligations and Guarantees
The following tables summarize our principal contractual cash obligations that are recorded on our consolidated balance sheets and principal guarantees of
such indebtedness at December 28, 2003, and are supplemented by the discussion following the tables.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004