AMD 2010 Annual Report Download - page 74

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The 8.125% Notes rank equally with our existing and future senior debt and are senior to all of our future
subordinated debt. The 8.125% Notes rank junior to all of our 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 our subsidiaries.
We may elect to purchase or otherwise retire the 8.125% Notes with cash, stock or other assets from time to
time in open market or private negotiated transactions, either directly or through intermediaries, or by tender
offer, when we believe the market conditions are favorable to do so.
7.75% Senior Notes Due 2020
On August 4, 2010, we issued $500 million of the 7.75% Notes. The 7.75% Notes are our general unsecured
senior obligations. Interest is payable on February 1 and August 1 of each year beginning February 1, 2011 until
the maturity date of August 1, 2020. The 7.75% Notes are governed by the terms of an indenture (the 7.75%
Indenture) dated August 4, 2010 between us and Wells Fargo Bank, National Association, as Trustee.
At any time (which may be more than once) before August 1, 2013, we can redeem up to 35% of the
aggregate principal amount of the 7.75% Notes within 90 days of the closing of an equity offering with the net
proceeds thereof at a redemption price not greater than 107.75% of the principal amount thereof, together with
accrued and unpaid interest to but excluding the date of redemption. Prior to August 1, 2015, we may redeem
some or all of the 7.75% Notes at a price equal to 100% of the principal amount, plus accrued and unpaid interest
and a “make whole” premium (as defined in the 7.75% Indenture).
From August 1, 2015, we may redeem the 7.75% Notes for cash at the following specified prices plus
accrued and unpaid interest:
Period
Price as
Percentage of
Principal Amount
Beginning on August 1, 2015 through July 31, 2016 ................. 103.875%
Beginning on August 1, 2016 through July 31, 2017 ................. 102.583%
Beginning on August 1, 2017 through July 31, 2018 ................. 101.292%
and on August 1, 2018 and thereafter ............................. 100.000%
Holders have the right to require us to repurchase all or a portion of our 7.75% Notes in the event that we
undergo a change of control, as defined in the 7.75% Indenture at a repurchase price of 101% of the principal
amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 7.75% Indenture)
may result in the acceleration of the maturity of the 7.75% Notes.
The 7.75% Indenture contains certain covenants that limit, among other things, our ability and the ability of
our subsidiaries, from:
• incurring additional indebtedness, except specified permitted debt;
• paying dividends and making other restricted payments;
• making certain investments if an event of a default exists, or if specified financial conditions are not
satisfied;
• creating or permitting certain liens;
• creating or permitting restrictions on the ability of our subsidiaries to pay dividends or make other
distributions to us;
• using the proceeds from sales of assets;
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