AMD expects net proceeds from the offering and sale of the 7% senior notes of about $490 million after deducting the initial purchasers' discounts and estimated offering expenses. The chipmaker will use the net proceeds to fund the purchase of all 8.125% senior notes due 2017 that are early tendered. Any remaining proceeds will be used to redeem any remaining 8.125% senior notes.
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TheStreet Ratings team rates ADVANCED MICRO DEVICES as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADVANCED MICRO DEVICES (AMD) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, relatively poor performance when compared with the S&P 500 during the past year and generally higher debt management risk."