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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Paul Engel who wrote (32558)	5/9/1998 5:05:00 PM
From: Kevin K. Spurway	Read Replies (1) \| Respond to of 1572503

Paul, re: "Remember - AMD now has ANOTHER $27,000,000 in YEARLY INTEREST EXPENSE TO SERVICE THIS debt!" I don't think this is quite right. Recall part of the AMD offering will go to pay off interest bearing debt (a syndicated bank loan, I think) that is coming due in installments starting this fall. If I remember correctly, the principal amount of this debt is about $240 million. So, factoring in the fact that AMD no longer will have to pay interest on this loan (interest probably at a higher rate anyway--let's say 8%): $517m * .06 - $240m * .08 = approximately $12 million in yearly interest expense. I for one am optimistic that AMD can produce at least an extra $12 million in operating profits from eating Intel's lunch. <ggg> Kevin