AMD 2007 Annual Report Download - page 258

Spansion Inc.
Notes to Consolidated Financial Statements—(Continued)
Pursuant to the terms of the credit facility, Spansion Japan is required, among other things, to submit any annual securities reports, semiannual reports,
quarterly reports, extraordinary reports, revision reports, and group reports and accounts prepared by Spansion Japan to the Japanese financial institution.
In addition, Spansion Japan is not permitted, among other things, to:
• create any security interests or liens on any of its assets, subject to certain exceptions;
• subordinate the payment of its debt under the credit facility to the payment of any unsecured debts; and
• enter into any merger, company partition, exchange or transfer of shares, assign all or a part of its business or assets to a third party, or otherwise
transfer all or a material part of its assets to a third party, subject to certain exceptions.
The credit facility terminates on December 26, 2007 unless terminated earlier in the event of default, or by either party upon written notice in accordance
with the terms of the credit facility.
On December 15, 2006, Spansion Japan borrowed 1.0 billion yen (approximately $8.4 million as of December 31, 2006) under this facility. This amount
bears interest at a rate of 1.05 percent and must be repaid no later than March 15, 2007.
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, this loan was transferred from AMD to a third-party financial institution. The loan bears a fixed annual interest
rate of 5.9 percent and is payable in equal, consecutive, monthly principal and interest installments through February 2009.
Spansion Japan 2006 Merged Revolving Credit Facility
On March 31, 2006, Spansion Japan entered into an Amended and Restated Uncommitted Revolving Credit Facility Agreement with a Japanese financial
institution (the Spansion Japan 2006 Merged Revolving Credit Facility), which provides for a revolving credit facility in the aggregate principal amount of up to
8.0 billion yen (or up to approximately $67.2 million as of December 31, 2006). The Spansion Japan 2006 Merged Revolving Credit Facility replaced the
Spansion Japan Revolving Credit Facility and Spansion Japan Uncommitted Revolving Credit Facility as a result of the merger of the two respective financial
institutions that had previously provided those separate facilities.
Pursuant to the terms of the Spansion Japan 2006 Merged Revolving Credit Facility, Spansion Japan may borrow amounts in increments of 50 million yen
(approximately $420,000 as of December 31, 2006), which may remain outstanding in monthly increments of up to three months. Amounts borrowed bear
interest at a rate equal to TIBOR, at the time of the drawdown, plus a margin of 0.5 percent per annum.
Spansion Japan is not permitted, among other things, to create any security interests or liens on any of its assets, subject to certain exceptions; subordinate
the payment of its debt under this credit facility to the payment of any unsecured debts; or enter into any merger, company partition, exchange or transfer of
shares, assign all or a part of its business or assets to a third party, or otherwise transfer all or a material part of its assets to a third party, subject to certain
exceptions.
Source: ADVANCED MICRO DEVIC, 10-K, February 26, 2008