AMD 2012 Annual Report Download - page 103

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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 29, 2012 and December 31,
2011 consisted of:
December 29,
2012
December 31,
2011
(In millions)
5.75% Convertible Senior Notes due 2012 ........................ $ — $ 485
6.00% Convertible Senior Notes due 2015, net of discount ........... 555 546
8.125% Senior Notes due 2017, net of discount .................... 464 459
7.75% Senior Notes due 2020 .................................. 500 500
7.50% Senior Notes due 2022 .................................. 500 —
Capital lease obligations ...................................... 23 26
2,042 2,016
Less: current portion ......................................... 5 489
Long-term debt and capital lease obligations, less current portion ...... $2,037 $1,527
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 were general unsecured senior obligations. Interest
was 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 were 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 were 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 49.661 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 would
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 might require the Company 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) might result in the acceleration of the maturity of the 5.75% Notes.
On August 15, 2012, the Company used $499 million of its existing cash balances to repay in full all of the
outstanding principal and accrued interest on the 5.75% Notes, which, in accordance with the terms of the
underlying indenture, became due on August 15, 2012.
6.00% Convertible Senior Notes due 2015
On April 27, 2007, the Company issued $2.2 billion aggregate principal amount of the 6.00% Convertible
Senior Notes due 2015 (the 6.00% Notes). The 6.00% Notes are general unsecured senior obligations. Interest is
95