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


To: Bill Jackson who wrote (114)7/7/2000 1:30:00 PM
From: PetzRead Replies (2) | Respond to of 275872
 
Bill, the capital loss is just the premium over $1,000 per bond that AMD pays to retire the bond. Albert thinks the tax benefit may be greater than that. The main benefit is eliminating $11M of interest payments per quarter when AMD could easily borrow $400M for $6M per quarter if they needed to.

It may also lower interest rates on any new debt they want to issue in 2001, for example, for the new 12" fab.

Petz