AMD closed $1.5 billion of senior notes due 2026 and 2028 on Mar 24, 2025

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

Advanced Micro Devices (AMD) closed a public offering of $1.5 billion in senior notes on Mar 24, 2025: $875 million of 4.212% notes due 2026 and $625 million of 4.319% notes due 2028. Senior notes are bonds: the issuer pays interest and repays the principal at maturity. The company reported it in an 8-K filed the same day, the form a US-listed company files to disclose an event; this one carries items 1.01 (a material agreement), 2.03 (a new financial obligation) and 8.01 (other events).1^,2^,3^,4

The 2026 notes were set to mature on Sept 24, 2026 and the 2028 notes on Mar 24, 2028. Both were general unsecured senior obligations, meaning no specific assets back them. Under the terms, AMD could redeem the 2026 notes at any time, at the greater of 100% of the principal and the present value of the remaining payments, discounted at the Treasury rate plus 5 basis points and less accrued interest; accrued and unpaid interest was added in either case. The 2028 notes carried a similar formula, with a margin of 10 basis points, before Feb 24, 2028. From that date AMD could redeem them at 100% of the principal plus accrued and unpaid interest. If a change of control triggering event occurred, as the indenture defines it, holders of a series could require AMD to buy their notes at 101% of the principal plus accrued and unpaid interest, unless AMD had given notice to redeem that series.5^,6^,7^,1^,8^,9^,10^,11

The indenture limited the ability of AMD and its restricted subsidiaries to create liens on certain assets to secure debt and to enter certain sale and leaseback transactions. It also limited AMD's ability to consolidate with, merge into, or sell or lease all or substantially all of its assets to, another person. These covenants were subject to exceptions. Among its events of default were interest left unpaid for 30 days, another covenant breach left uncured for 90 days, and certain bankruptcy, insolvency or reorganization events.12^,13^,14^,15

The 8-K reported a second financing. On Mar 24, 2025, AMD issued $950 million in unsecured commercial paper, a form of short-term borrowing, under its previously disclosed commercial paper program. The filing says the paper was issued under an exemption from registration under federal and state securities laws.16^,17

A prospectus supplement dated Mar 10, 2025 relates to the notes, and an indenture dated Jun 9, 2022, as supplemented on Mar 24, 2025, governs them. AMD is a hardware company listed on Nasdaq, and its revenue was $25.79 billion in the fiscal year that ended Dec 28, 2024.18^,19^,1^,20^,21^,22

For the notes and the commercial paper, this article reads the 8-K's own text. The company says its description of the indenture and the notes does not claim to be complete and refers to the base indenture and to the Second Supplemental Indenture, attached as Exhibit 4.1; that exhibit is not among the documents we read.23