AMD 2004 Annual Report Download - page 38

Table of Contents
Net cash provided by financing activities was $907 million in 2002, primarily due to $486 million in proceeds, net of $14 million in debt issuance costs,
from the issuance of our 4.75% Debentures, $391 million in proceeds, net of $11 million in debt issuance costs, from the issuance of our 4.50% Notes, $108
million drawn under the July 2003 Spansion Term Loan, net of $2 million in debt issuance costs, $120 million drawn under our revolving credit facility, $21
million in proceeds from equipment lease financings, $29 million in proceeds from the issuance of stock under our Employee Stock Purchase Plan and the
exercise of stock options, and $76 million of net capital investment allowances and interest subsidies received from the Federal Republic of Germany and the
State of Saxony for the Fab 30 project. These amounts were offset by payments of $325 million on debt and capital lease obligations.
Liquidity
We believe that cash flows from operations and current cash balances, together with currently available credit facilities (see “Revolving Credit Facilities,”
below) and external financing, will be sufficient to fund our operations and capital investments in the short term and long term. We also believe that we have
sufficient financing arrangements in place to fund the estimated $2.5 billion required to facilitize Fab 36. See “Fab 36 Term Loan and Guarantee and Fab 36
Partnership Agreements,” below. Should additional funding be required, such as to meet payment obligations of our long-term debts when due, we may need to
raise the required funds through borrowings or public or private sales of debt or equity securities. Such funding may be obtained through bank borrowings, or
from issuances of additional debt or equity securities, which may be issued from time to time under an effective registration statement; through the issuance of
securities in a transaction exempt from registration under the Securities Act of 1933; or a combination of one or more of the foregoing. We believe that, in the
event of such requirements, we will be able to access the capital markets on terms and in amounts adequate to meet our objectives. However, given the possibility
of changes in market conditions or other occurrences, there can be no certainty that such funding will be available in quantities or on terms favorable to us.
Revolving Credit Facilities
AMD Revolving Credit Facility
Our revolving credit facility provides for a secured revolving line of credit of up to $100 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 26, 2004, no borrowings were outstanding under our revolving credit facility.
Pursuant to the terms of our revolving credit facility, we have to comply, among other things, with the following financial covenants if our net domestic
cash (as defined in our revolving credit facility) 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 our revolving credit facility) as follows:
Measurement Date Amount
(in millions)
Last day of each fiscal quarter in 2004 $ 1,425
Last day of each fiscal quarter in 2005 $ 1,850
Last day of each fiscal quarter thereafter $ 2,000
33
Source: ADVANCED MICRO DEVIC, 10-K, March 01, 2005