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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?


To: Dave who wrote (156679)1/24/2002 8:10:25 AM
From: Dan3  Read Replies (2) | Respond to of 186894
 
Re: Investment banks typically charge 7%

You want to run that by us again? This isn't an IPO, it's a bond offering.



To: Dave who wrote (156679)1/24/2002 8:53:31 AM
From: John F. Dowd  Respond to of 186894
 
Dave and Dan: It is neither a straight bond offering or equity it is a convert and probably will get close to an equity commission. It is interesting that AMD is doing this now as they must see some light at the end of the tunnel and sense an uptick coming. They also may be on to something with this hyper transport data thing. Actually all o this bodes well for the superior INTC corp. as what is good for the goose is good for the gander and INTC is already prepared with their idle fabs to go into full gear at a moments notice with evidently less cash investment required than in prior years. I think the whole key is the .13 chips and the huge manufacturing leverage and profitability generated thereby.
JFD



To: Dave who wrote (156679)1/24/2002 10:34:37 AM
From: Joe NYC  Respond to of 186894
 
Dave,

Investment banks typically charge 7%, therefore 7% of 500M is 35M

That seems to be a high fee.

If their debt is to be "re-floated", AMD will still have ~134M in net proceeds.

It seems that AMD feels that 900 million to 1 billion is an appropriate level of cash for them, and this is where the extra 134 million will bring them. It went down a bit when they called some bonds last summer:

amd.com

and convertible bonds got converted:
amd.com

Joe