AMD 2003 Annual Report Download - page 85

Table of Contents
The redemption prices for the specified periods are as follows:
Period
Price as
percentage of
principal amount
Beginning on February 5, 2005 through February 4, 2006 102.375%
Beginning on February 5, 2006 through February 4, 2007 101.583%
Beginning on February 5, 2007 through February 4, 2008 100.792%
Beginning on February 5, 2008 100.000%
4.50% Convertible Senior Notes Due 2007
In November 2002, the Company sold $402.5 million of its 4.50% Convertible Senior Notes due December 1, 2007 (the 4.50% Notes) in a registered
offering. Interest on the 4.50% Notes is payable semiannually in arrears on June 1 and December 1 of each year, beginning June 1, 2003. Beginning on
December 4, 2005, the 4.50% Notes are redeemable by the Company at its option for cash at specified prices expressed as a percentage of the outstanding
principal amount plus accrued and unpaid interest provided that the Company may not redeem the 4.50% Notes unless the last reported sale price of its common
stock is as least 150 percent of the then-effective conversion price for at least 20 trading days within a period of 30 trading days ending within five trading days
of the date of the redemption notice.
The redemption prices for the specified periods are as follows:
Period
Price as
percentage of
principal amount
Beginning on December 4, 2005 through November 30, 2006 101.8%
Beginning on December 1, 2006 through November 30, 2007 100.9%
On December 1, 2007 100.0%
The 4.50% Notes are convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding the
maturity date of December 1, 2007, unless previously redeemed or repurchased, into shares of common stock at a conversion price of $7.37 per share, subject to
adjustment in certain circumstances. At this conversion price, each $1,000 principal amount of the 4.50% Notes will be convertible into approximately 135
shares of the Company’s common stock. Issuance costs incurred in the amount of approximately $12 million are being amortized ratably, over the term of the
4.50% Notes, as interest expense approximating the effective interest method.
Holders have the right to require the Company to repurchase all or a portion of its 4.50% Notes in the event that it undergoes specified fundamental
changes, including a change of control. In each such case, the redemption or repurchase price would be 100 percent of the principal amount of the 4.50% Notes
plus accrued and unpaid interest.
July 2003 FASL Term Loan
On July 11, 2003, the Company amended its September 2002 Loan Agreement and assigned it to FASL LLC. Under the Amended and Restated Term
Loan Agreement (the July 2003 FASL Term Loan), amounts borrowed bear interest at a variable rate of LIBOR plus four percent, which was 5.14 percent at
December 28, 2003. Repayment occurs in equal, consecutive, quarterly principal and interest installments ending in September 2006. As of December 28, 2003,
$72.5 million was outstanding under the July 2003 FASL Term Loan, of which 60 percent is guaranteed by the Company (see Note 12) and 40 percent is
guaranteed by Fujitsu. FASL LLC has granted a security interest in certain property, plant and equipment as security under the July 2003 FASL Term Loan.
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Source: ADVANCED MICRO DEVIC, 10-K, March 09, 2004