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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 214.11+3.9%Nov 26 3:59 PM EST
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To: Rink who wrote (185506)1/27/2006 3:28:55 PM
From: dougSF30Read Replies (1) of 275872
 
If you want, explain to Keith that the $20M charge is a 'pre-payment penalty' of sorts, as they are paying the debt holders more than the principal + interest, in order to redeem at this time. So that's an expense, hence the charge.

107.75% of principal + interest on $210 of principal debt.

So, the 7.75% part is ~ $16M of the charge, and then there are probably fees.

This info (prepayment penalty schedule) has been available (in 10-Q's and 10-K's) since the debt was issued, so it shouldn't surprise larger investors.
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