Boston, MA 02\/28\/2014 (wallstreetpr) –\u00a0Advanced Micro Devices, Inc. (NYSE:AMD)<\/b> continues to attract positive attention from investors and analysts. The company is putting in efforts to improve its balance sheet and take advantage of the recent improvement in the chip market.<\/p>\n
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Financial improvements planned:<\/b><\/p>\n
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Among the first step, Advanced Micro Devices, Inc. (NYSE:AMD) is planning for a private placement of $600 million worth of senior notes with maturity in July, 2019. The company will be using the proceeds to retire $425 million of 6% senior notes due to expire in 2015. The balance amount will be used to retire higher interest notes maturing in 2017. The company is expected to save almost $1.25 million per year by replacing higher interest debt (6% and 8%) with lower interest one (6.75%) and also take advantage of longer maturity. It will not be using the proceeds for its operations. AMD has already shuffled about $50 million of the 2015 million.<\/p>\n
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Capital intensive plan:<\/b><\/p>\n
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Advanced Micro Devices, Inc. (NYSE:AMD) requires cash on hand to take care of the critical period ahead. It used the good results of 2013 and the strong demand to shore up its balance sheet. Analysts were worried about its ability to service its debt as there was a substantial debt with maturity in 2015. The last year was good for the company. Riding on the back of strong performance from the gaming console market, AMD was able to strengthen its cash flow position. There were worries that the declining growth of the PC market and its shrinking market share would adversely affect the company\u2019s financials. But the strong performance from the gaming console segment has ensured that the company could ride over the rough patch.<\/p>\n
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The gaming console business saw a lot of momentum after the major players, Microsoft Corp (NASDAQ:MSFT) <\/b>and Sony Corp (ADR) (NYSE:SNE)<\/b> launched new versions of their respective consoles just before the festive shopping season took off. Sales were far better than expected with Sony itself achieving more than 5.3 million units\u2019 sales of its PS4 console. Advanced Micro Devices, Inc. (NYSE:AMD) supplies its chips to both the companies.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 02\/28\/2014 (wallstreetpr) –\u00a0Advanced Micro Devices, Inc. (NYSE:AMD) continues to attract positive attention from investors and analysts. The company is putting in efforts to […]<\/p>\n","protected":false},"author":12,"featured_media":15328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[2041,1621,738,595,1634,4341],"stock_ticker":[],"class_list":["post-16247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-advanced-micro-devices-inc-nyseamd","tag-microsoft-corp-nasdaqmsft","tag-nasdaqmsft","tag-nyseamd","tag-nysesne","tag-sony-corp-adr-nysesne","entry"],"acf":[],"yoast_head":"\n