AMD 2007 Annual Report Download - page 255

Spansion Inc.
Notes to Consolidated Financial Statements—(Continued)
9. Debt and Capital Lease Obligations
The Company’s debt and capital lease obligations consist of:
Dec. 31, 2006 Dec. 25, 2005
(in thousands)
Debt obligations to related parties:
Spansion China Line of Credit $ — $ 15,000
Spansion Penang Loan — 4,833
Spansion Penang Building Loan — 5,112
Senior Subordinated Notes — 158,970
Promissory Note 500 —
Total debt obligations to related parties 500 183,915
Debt obligations to third parties:
Spansion Japan Term Loan — 72,274
Spansion China Bank Enterprise Cooperation Revolver 7,925 18,722
Spansion Japan Revolving Credit Facility — 43,020
Senior Notes 228,231 225,787
Spansion Japan 2006 Revolving Credit Facility 8,402 —
Spansion Penang Loan 3,543 —
Spansion Japan 2006 Merged Revolving Credit Facility 16,804
Exchangeable Senior Subordinated Debentures 207,000 —
Spansion Japan 2006 Uncommitted Revolving Credit Facility 8,402
Senior Secured Term Loan Facility 500,000 —
Obligations under capital leases 137,240 215,895
Total debt obligations to third parties 1,117,547 575,698
Total debt obligations 1,118,047 759,613
Less: current portion 108,374 233,555
Long-term debt and capital lease obligations, less current portion $ 1,009,673 $ 526,058
Debt Obligations to Related Parties
Spansion China Line of Credit
As part of the reorganization in 2005, the Company assumed $60 million of unsecured debt, payable by the Company’s subsidiary in the People’s Republic
of China, Spansion China Limited, to AMD and its subsidiary in Singapore, Advanced Micro Devices (Singapore) Pte., or AMD Singapore.
On February 15, 2006, the Company repaid the remaining outstanding principal of $15.0 million and accrued interest of approximately $121,000 to AMD
under the Spansion China Line of Credit.
Spansion Penang Loan
On January 29, 2004, Spansion Penang entered into a financial arrangement with AMD. Under the terms of the arrangement, Spansion Penang borrowed
approximately 29.0 million Malaysian Ringgit (approximately $8.0 million based on the exchange rate as of January 29, 2004) from AMD to fund the purchase
of manufacturing equipment.
In January 2006, AMD’s loan to Spansion Penang, more fully described under “Debt Obligations to Third Parties—Spansion Penang Loan” below, was
transferred from AMD to a third-party financial institution.
Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008