Advanced Micro Devices Inc (AMD)

[Petz]

I think its obvious that $500M of debt will disappear because all of the converible bonds will be converted to stock at the first call date or even sooner via a tender offer (stock for bonds) at some earlier date. Say hello to 20% dilution.

But obviously they could go right back out and sell another $500M or even $1B of convertible bonds without much trouble. That, and profits from operations and they could have $2B to $2.5B cash in six months.

Petz