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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Goutam who wrote (100)	7/6/2000 8:10:21 PM
From: ptanner	Read Replies (1) \| Respond to of 275872

Re: AMD Bond re-purchase timing vs Earnings Perhaps AMD wants to be able to add a nice statement about the benefits of the early redemption during the earnings announcement? To highlight the items noted earlier (lower interest, higher EPS, solid cash position) by Albert (via Petz, siliconinvestor.com. I imagine someone will be ready to adjust the numbers in the half-hour between the end of the deadline and earnings. I am looking forward to July 19th. -PT

To: Goutam who wrote (100)	7/6/2000 8:15:13 PM
From: Mani1	Read Replies (2) \| Respond to of 275872

Goutama re <<If they hold on to the bond, what are the advantages in doing so in case of fantastic EPS numbers other than the lower risk of the bond?>> That is what I was thinking. If the bond has "zero risk", then the holder would not want to accept AMD's offer and sell it back at a slight premium. Re <<Is there any hidden message regarding the forthcoming EPS release in this AMD announcement?>> Hmmm..... If Earnings are better than expected, then the risk on the bond would be lower than expected, no? So AMD wants to set that limit right at the earnings to encourage the holders to turn them in right before the better than expected earnings. If the holder find out about the earnings, they would not want to retire their bond early even if there is a slight premium. Does this make any sense? Mani

To: Goutam who wrote (100)	7/6/2000 8:40:39 PM
From: EricRR	Respond to of 275872

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.