AMD priced $4.75B of new debt in its largest bond sale ever, tapping markets at rates barely above US Treasuries.
The offering spans four tranches: $1.25B of 4.6% notes due 2029, $1.5B of 5% notes due 2031, $1B of 5.25% notes due 2033, and $1B of 5.5% notes due 2036. Yields run from 4.64% to 5.53%, with spreads of 43 to 90 basis points over comparable Treasuries. Moody’s and S&P are expected to rate the paper A1 and A.
AMD told the SEC it will use the proceeds for general corporate purposes, which may include repaying debt. It gave no specifics, but the timing tracks a sharp rise in capital intensity. The company ended Q2 with about $13.1B in cash and short-term investments against $3.2B of debt, yet inventories climbed to $8.47B, payables to $5.36B, and first-half property and equipment spending hit $1.2B, more than double a year earlier.
Analysts speculate the cash could back long-term supply agreements for memory, logic production, or advanced packaging. The average long-term deal with a major memory maker now runs about $7.14B, according to Micron’s latest comments, so $4.75B alone would not cover a strategic commitment of that size.
Still, raising nearly $5B at these rates gives AMD flexibility in a market where almost everything is undersupplied.
