9/5/19 AMD Paid Off More Long Term Debt

AMD has some long term debt in the form of 2.125% Convertible Senior Notes due 2026. On 9/3/19

AMD filed SEC Form 8-K that said:

“On August 21, 2019 and September 3, 2019, Advanced Micro Devices, Inc. (the “Company”) entered into agreements to issue a total of 15,750,391 shares of its common stock and an aggregate cash payment of $14,792,188.01 to certain holders of the Company’s 2.125% Convertible Senior Notes due 2026 (the “Notes”) in exchange for an aggregate principal amount of $126,000,000 of Notes.”

So AMD increased the float of shares by 15.7 M shares, with total around 1.1 B shares, and has decreased its long term debt by $126 M. The conversion of these senior notes was always inevitable once condition was met. The increase of shares was also a given. Continued decrease in debt is definitely welcomed. The holders of these notes likely sold these shares, which might have contributed to a (very) short term downward pressure on the share price.

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