AMD 2009 Annual Report Download - page 116

a termination of trading (as defined in the 5.75% Indenture). Additionally, an event of default (as defined in the
5.75% Indenture) may result in the acceleration of the maturity of the 5.75% Notes.
The Company has the right to purchase or otherwise retire the balance of its 5.75% Notes with cash, stock or
other assets from time to time in open market or privately negotiated transactions, either directly or through
intermediaries, or by tender offer.
6.00% Convertible Senior Notes due 2015
On April 27, 2007, the Company issued $2.2 billion aggregate principal amount of 6.00% Convertible
Senior Notes due 2015 (the 6.00% Notes). The 6.00% Notes are general unsecured senior obligations of the
Company. Interest is payable on May 1 and November 1 of each year beginning November 1, 2007 until the
maturity date of May 1, 2015.
In 2008, the Company repurchased $60 million in principal amount of its 6.00% Notes for $21 million. The
Company recorded a net gain on repurchase of approximately $34 million, which is recorded in “Other income
(expense), net” in its 2008 consolidated statement of operations.
In 2009, the Company repurchased $344 million in aggregate principal amount of its 6.00% Notes for $161
million. The Company recorded a net gain on repurchase of approximately $174 million, which is recorded in
“Other income (expense), net” in its 2009 consolidated statement of operations.
Upon the occurrence of certain events described in the indenture governing the 6.00% Notes, the remaining
6.00% Notes will be convertible into cash up to the principal amount, and if applicable, into shares of the
Company’s common stock issuable upon conversion of the 6.00% Notes (6.00% Conversion Shares) in respect of
any conversion value above the principal amount, based on an initial conversion rate of 35.6125 shares of
common stock per $1,000 principal amount of 6.00% Notes, which is equivalent to an initial conversion price of
$28.08 per share. This initial conversion price represents a premium of 100% relative to the last reported sale
price of the Company’s common stock on April 23, 2007 (the trading date preceding the date of pricing of the
6.00% Notes) of $14.04 per share. The conversion rate will be adjusted for certain anti-dilution events. In
addition, the conversion rate will be increased in the case of corporate events that constitute a fundamental
change (as defined in the 6.00% Indenture) under certain circumstances. Holders of the 6.00% Notes may require
the Company to repurchase the 6.00% Notes for cash equal to 100% of the principal amount to be repurchased
plus accrued and unpaid interest upon the occurrence of a fundamental change or a termination of trading (as
defined in the 6.00% Indenture). Additionally, an event of default (as defined in the 6.00% Indenture) may result
in the acceleration of the maturity of the 6.00% Notes.
The Company has the right to purchase or otherwise retire the balance of its 6.00% Notes with cash, stock or
other assets from time to time in open market or privately negotiated transactions, either directly or through
intermediaries, or by tender offer.
8.125% Senior Notes Due 2017
On November 30, 2009, the Company issued $500 million of 8.125% Senior Notes due 2017 (the 8.125%
Notes) at a discount of 10.204%. The 8.125% Notes are general unsecured senior obligations of the Company.
Interest is payable on June 15 and December 15 of each year beginning June 15, 2010, until the maturity date of
December 15, 2017. The discount of $51 million is recorded as a contra debt and will be amortized, using the
effective interest method, to interest expense over the life of the loan.
Prior to December 15, 2013, the Company may redeem some or all of the 8.125% Notes at a price equal to
100% of the principal amount, plus accrued and unpaid interest and a “make-whole” premium. Thereafter, the
Company may redeem all or part of the 8.125% Notes at any time at specified redemption prices, plus accrued
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