AMD (AMD:NYSE - commentary - research - Cramer's Take) plans to offer $500 million of its common stock and said it will use the proceeds to redeem part of its debt and to fund its capital spending plans.
The Sunnyvale, Calif., chipmaker also said it expects to grant the underwriter, Merrill Lynch, an option to buy up to $75 million more of stock to cover any overallotments.
AMD said Monday that it will use around $226 million of the net proceeds to fund the redemption of up to 35% of the principal amount of its 7.75% senior notes due 2012. The rest of the proceeds will go toward capital expenditures, working capital and other general corporate purposes, including the possible repayment of debt.
The offering comes as AMD's shares are in the midst of tear. Since Oct. 21, the stock has gained more than 62%, closing at $35.47 at 4 p.m. EST. In after-hours trading, AMD fell 41 cents, or 1.2%, to $35.06.
INTC ST bot 1000 shares@20.76 - Finally seeing INTC perform a little better today than the overall market. Looks like a very good chance we will see at least a temporary bottom for the stock:
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