AMD 2015 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2015 AMD annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

As of December 26, 2015, the outstanding aggregate principal amount of the 6.75% Notes was $600
million.
At any time before March 1, 2019, the Company may redeem some or all of the 6.75% Notes at a price
equal to 100% of the principal amount, plus accrued and unpaid interest and a “make whole” premium (as set
forth in the 6.75% Indenture).
Holders have the right to require the Company to repurchase all or a portion of the 6.75% Notes in the event
that the Company undergoes a change of control, as defined in the 6.75% Indenture, at a price of 101% of the
principal amount plus accrued and unpaid interest. Additionally, an event of default (as defined in the 6.75%
Indenture) may result in the acceleration of the maturity of the 6.75% Notes.
The 6.75% Indenture contains certain covenants that limit, among other things, the Company’s ability and
the ability of its subsidiaries, to:
• incur additional indebtedness, except specified permitted debt;
• pay dividends and make other restricted payments;
• make certain investments if an event of a default exists, or if specified financial conditions are not
satisfied;
• create or permit certain liens;
• create or permit restrictions on the ability of its subsidiaries to pay dividends or make other distributions
to the Company;
• use the proceeds from sales of assets;
• enter into certain types of transactions with affiliates; and
• consolidate, merge or sell its assets as entirety or substantially as an entirety.
7.75% Senior Notes Due 2020
On August 4, 2010, the Company issued $500 million of its 7.75% Senior Notes Due 2020 (7.75% Notes).
The 7.75% Notes are general unsecured senior obligations of the Company. 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 the Company and
Wells Fargo Bank, N.A., as trustee.
During 2014, the Company repurchased $50 million in aggregate principal amount of its 7.75% Notes in
open market transactions for $49 million, which included payment of accrued and unpaid interest of $1 million.
The Company recorded a total gain of $2 million in connection with the foregoing repurchase of the 7.75%
Notes. As of December 26, 2015, the outstanding aggregate principal amount of the 7.75% Notes was $450
million.
From August 1, 2015, the Company may redeem the 7.75% Notes at specified redemption 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%
On August 1, 2018 and thereafter ................................. 100.000%
91