Advanced Micro Devices said today it plans to raise $1.02 billion in common stock and debt as part of its plan to restructure its debt.

Sunnyvale, California-based AMD, which is the No. 2 maker of PC microprocessors, said it plans to raise $600 million in common stock from the public market, as well as $450 million in convertible senior notes due 2026 ($30 million goes to the costs of the transaction). AMD CEO Lisa Su recently announced AMD’s upcoming family of Zen-based processors coming out late this year and early next year. She believes those chips will make AMD more competitive with Intel, the world’s biggest chip maker.

In addition, AMD expects to grant the underwriters a 30-day option to purchase up to approximately $90 million of additional shares of common stock at the public offering price and up to $67.5 million principal amount of additional convertible senior notes.

AMD intends to use net proceeds of $1.02 billion received from the offerings to repay its previous debt. After the completion of a tender offer for its outstanding senior notes, AMD has the option, but not the obligation, to call any and all of the untendered 7.75 percent senior notes due 2020 with any remaining net proceeds.

AMD will use any remaining net proceeds for capital expenditures, working capital, and other general corporate purposes. J.P. Morgan Securities, Barclays Capital, and Credit Suisse Securities are acting as joint lead book-running managers of the offering of the shares. BofA Merrill Lynch, Pierce, Fenner & Smith, Wells Fargo Securities, Deutsche Bank Securities, and Morgan Stanley & Co. are also joint book-running managers for the offering of the shares.


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