While reading the 10K it appears that AMD wouldn't really improve their cash position by another debt offering due to the clause in the October Term Loan:
"Additionally, under the terms of the October 2006 Term Loan, we must prepay the October 2006 Term Loan with: (i) 100 percent of the net cash proceeds from any debt incurred by us or a restricted subsidiary; (ii) 50 percent of net cash proceeds from the issuance of any capital stock by us (subject to specified exceptions); "
So they get zippo, nada, zilch cash if they try to raise it through additional debt offering and only 50% of the proceeds of any stock offering.
Reading further in the same paragraph:
(iv) 100 percent of net cash proceeds from asset sales outside of the ordinary course of business in excess of $30 million, subject to a reinvestment allowance;
Looks like a stock offering might be their only choice for raising cash this year, hence the recent proposal to raise the limits on shares outstanding.
gb