AMD Just Secured a $500 Million Line of Credit

AMD has been struggling financially thanks to a slowing PC industry. Today, AMD announced that it had secured a loan of half a billion dollars from a group of lenders. Bank of America is acting as agent for the lenders. This secured revolving line of credit will mature five years from now, on November 12, 2018. Speaking in a statement released today, AMD CFO Devinder Kumar said the loan would offer the financial flexibility AMD needs.

"We have made significant progress during the last year strengthening our capital structure to support our strategic growth plans," said Devinder Kumar, AMD senior vice president and chief financial officer. "We expect to end the fourth quarter of 2013 with cash, cash equivalents and marketable securities, including long-term marketable securities, balances of approximately $1.2 billion and remain committed to maintaining ongoing balances of approximately $1.1 billion, our target optimal level. This secured revolving line of credit provides AMD with greater financial flexibility as we continue transforming AMD for growth across a more diverse set of markets."

AMD has, over the last year, made attempts to reduce investments and capital in non-core parts of the business. The company in March entered into a transaction that saw the company sell and lease back its Austin, Texas campus to Southwest Parkway. That deal was said to generate approximately $164 million in cash for the chip maker. Then, in September, AMD did the same with its Singapore facility. That generated proceeds of up to $46 million (net of all fees).

For other AMD-related news from its Developer Summit in San Jose, check out our live blogs!

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  • deftonian
    I can't help but like AMD for being a little engine that could. They've stuck through the tough times and continue to release products at lower price points than it's competitors. They offer great incentives (bundles) and don't really back down from a fight (Intel, Nvidia) even though they're smaller. They have a lot of fight in them so gotta give props. I hope the next gen consoles give them the boost they need. I'd love to see them make more money to invest in product development. I'd like to see them compete better against Intel. They already do a nice job competing against Nvidia.
  • sykozis
    You don't have to dislike Intel, to like AMD or want AMD to be more competitive. Intel fans should be praying that AMD figures out how to compete again. Intel puts out their best products when they have competition.
  • Other Comments
  • eklipz330
    got to give them a hand for trying. hopefully within the next few years, they will become the primary choice for computer builds. should wake up intel too
  • deftonian
    I can't help but like AMD for being a little engine that could. They've stuck through the tough times and continue to release products at lower price points than it's competitors. They offer great incentives (bundles) and don't really back down from a fight (Intel, Nvidia) even though they're smaller. They have a lot of fight in them so gotta give props. I hope the next gen consoles give them the boost they need. I'd love to see them make more money to invest in product development. I'd like to see them compete better against Intel. They already do a nice job competing against Nvidia.
  • back_by_demand
    They don't need to focus too heavily on PC, seeing as they are the CPU/GPU in both PS4 and XB1, all is good in the green house