AMD 2010 Annual Report Download - page 111

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NOTE 10: Debt and Other Obligations
Long-term Debt and Capital Lease Obligations
The Company’s long-term debt and capital lease obligations as of December 25, 2010 and December 26,
2009 consist of:
December 25,
2010
December 26,
2009
(In millions)
5.75% Convertible Senior Notes due 2012 ................ 485 485
6.00% Convertible Senior Notes due 2015, net of discount . . . 723 1,641
8.125% Senior Notes due 2017, net of discount ............ 454 449
7.75% Senior Notes Due 2020 .......................... 500 —
Fab 36 Term Loan ................................... — 460
GF Class A Subordinated Convertible Notes .............. — 254
GF Class B Subordinated Convertible Notes ............... — 1,015
Capital lease obligations .............................. 30 256
2,192 4,560
Less: current portion ................................. 4 308
Long-term debt and capital lease obligations, less current
portion .......................................... $2,188 $4,252
5.75% Convertible Senior Notes due 2012
On August 14, 2007, the Company issued $1.5 billion aggregate principal amount of the 5.75% Convertible
Senior Notes due 2012 (the 5.75% Notes). The 5.75% Notes are general unsecured senior obligations. Interest is
payable in arrears on February 15 and August 15 of each year beginning February 15, 2008 until the maturity
date of August 15, 2012. The terms of the 5.75% Notes are governed by an Indenture (the 5.75% Indenture),
dated as of August 14, 2007, by and between the Company and Wells Fargo Bank, National Association, as
Trustee.
In 2009, the Company repurchased $1,015 million in aggregate principal amount of the Company’s
outstanding 5.75% Notes for $1,002 million in cash.
The 5.75% Notes will be convertible, in whole or in part, at any time prior to the close of business on the
business day immediately preceding the maturity date of the 5.75% Notes, into shares of the Company’s common
stock based on an initial conversion rate of 49.6771 shares of common stock per $1,000 principal amount of the
5.75% Notes, which is equivalent to an initial conversion price of approximately $20.13 per share. This initial
conversion price represents a premium of 50% relative to the last reported sale price of the Company’s common
stock on August 8, 2007 (the trading date preceding the date of pricing of the 5.75% Notes) of $13.42 per share.
This initial 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 5.75%
Indenture) of AMD under certain circumstances. Holders of the 5.75% Notes may require us to repurchase the
5.75% 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 (as defined in the 5.75% Indenture) or 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 5.75% Notes rank equally with the Company’s existing and future senior debt and are senior to all of
the Company’s future subordinated debt. The 5.75% Notes rank junior to all of the Company’s existing and
future senior secured debt to the extent of the collateral securing such debt and are structurally subordinated to all
existing and future debt and liabilities of the Company’s subsidiaries.
103