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Technology Stocks : Intel Corporation (INTC)
INTC 36.66+1.3%3:59 PM EST

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To: Tony Viola who wrote (156732)1/24/2002 12:57:16 PM
From: Joe NYC  Read Replies (1) of 186894
 
Tony,

isn't AMD's new debt instrument one that's convertible to common stock, which will result in dilution of the stock?

Yes, it is convertible at premium to current price. The interest rate in the meantime is 4.5%, lower than 11% they called and probably on par with the subsidised rates of debt that is maturing. There will be immediate dilution, so there is a trade-off.

Joe

<edit> So are you modifying your theory that debt is bad, and only weak companies have debt to a new theory that convertible debt is bad? </edit>
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