How could I miss this! AMD is very sneaky!
(edit- maybe this 2 deadline approach is the way its always done, in which case I apologize for getting excited!)
SUNNYVALE, Calif.--(BUSINESS WIRE)--July 6, 2000--Advanced Micro Devices, Inc. (``AMD'') today announced that it is commencing a cash tender offer for the outstanding $400,000,000 aggregate principal amount of its 11% Senior Secured Notes due 2003 (the ``Notes''). The purchase price for each $1,000 principal amount of Notes validly tendered and accepted for purchase will be an amount based on a 50 basis point spread over the yield of the 5.500% U.S. Treasury Note due July 31, 2001 as of 2:00 p.m., New York City time, on the second business day immediately preceding the expiration date of the tender offer, plus accrued and unpaid interest to but not including the date of payment, less a consent payment of $25.00. The tender offer is scheduled to expire at 5:00 p.m., New York City time, on August 2, 2000, unless extended.
In conjunction with its tender offer, AMD is also soliciting consents from the registered holders of the Notes to effect certain amendments to the indenture under which the Notes were issued. Holders who provide consents to the proposed amendments would receive a consent payment of $25.00 per $1,000 principal amount of Notes tendered and accepted for purchase pursuant to the tender offer. To receive a consent payment, holders must provide their consents to the proposed amendments by the Consent Payment Deadline, which is 5:00 p.m., New York City time, on July 19, 2000, unless extended.
Anyone wishing to accept the buyback offer would naturally also accept the "consent" offer- that's why a penalty is needed. But the consent offer has an earlier deadline then the buyback offer! Thus the "real" deadline for the buyback offer is earnings. This is very sneaky- I wonder if there was a reason for such monkey business. Perhaps the deadline for the buyback had to be a certain period from its announcement? (4 weeks?) But maybe a "consent" can have an earlier deadline?
The terms of the "consent" were not disclosed. I wish I knew what they were. |
