ADVANCED MICRO DEVICES, INC. (NASDAQ:AMD) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
Agreement
and its subsidiaries, AMD International Sales Service, Ltd.
(together with the Company, the Borrowers) and ATI Technologies
ULC (together with the Borrowers, the Loan Parties) entered into
a fifth amendment (the Fifth Amendment) to the amended and
restated loan and security agreement dated April 14, 2015 (the
Amended and Restated Loan and Security Agreement) with certain
financial institutions party to thereto from time to time as
lenders (the Lenders) and Bank of America, N.A., as agent for the
Lenders (the Agent).
Agreement as amended by the first amendment dated as of June 10,
2015, the second amendment dated as of April 29, 2016, the third
amendment dated as of June 21, 2016, and the fourth amendment
dated as of September 7, 2016.
Security Agreement to, among other things:
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extending the total senior secured asset based line of
credit (the Secured Revolving Line of Credit) maturity date from April 14, 2020 to March 21, 2022. |
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reducing the Applicable Margin, which is applicable to both
loans and letters of credit issued under the Secured Revolving Line of Credit as follows: |
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Applicable Margin Prior to Fifth Amendment
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Applicable Margin Effective as of the Fifth Amendment
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Level
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Average
Availability for
Last Fiscal Month
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Base Rate Revolver Loans: Applicable Margin
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LIBOR Revolver Loans: Applicable Margin
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Base Rate Revolver Loans: Applicable Margin
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LIBOR Revolver Loans: Applicable Margin
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I
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66.66% of the Revolver Commitment
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0.50%
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1.50%
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0.25%
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1.25%
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II
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33.33% of the Revolver Commitment 66.66%
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0.75%
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1.75%
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0.50%
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1.50%
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III
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33.33% of the Revolver Commitment
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1.00%
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2.00%
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0.75%
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1.75%
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reducing the unused commitment fee applicable to the
Secured Revolving Line of Credit from 0.375% to 0.25%. |
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lowering the minimum threshold of Availability required to
be maintained by the Obligors in order to avoid cash dominion, from the greater of (ii) 15% of the total commitment amount and (i) $75 million to (a) 10% of the total commitment amount and (b) $50 million |
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improving the borrowing base reporting requirement
threshold from $25 million borrowing outstanding on the Secured Revolving Line of Credit to the greater of (i) $75 million and (ii) 20% of the borrowing base, resulting in less frequent borrowing base reporting by the Company. |
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amending maximum dollar limits related to supply chain
finance arrangements from amounts that qualify as Qualified Factoring Arrangements under the Amended and Restated Loan and Security Agreement from $220 million in aggregate to $220 million in aggregate during the first and fourth fiscal quarters of the Borrowers and $300 million in aggregate during the second and third fiscal quarters of the Borrowers. |
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reducing the amount of the Secured Revolving Line of Credit
that will be available for issuance for letters of credit from $75 million to $45 million. |
Line of Credit is qualified in its entirety by reference to the
entire text of the Fifth Amendment, filed as Exhibit 10.1 to this
Current Report on Form 8-K and incorporated herein by reference.
Capitalized terms not defined herein shall have the meanings set
forth in the Amended and Restated Loan and Security Agreement.
under an Off-Balance Sheet Arrangement of a Registrant.
Amendment to the Amended and Restated Loan Agreement is contained
in Item 1.01 above and is incorporated herein by reference.
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Exhibit No.
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Description
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10.1
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Fifth Amendment to the Amended and Restated Loan and
Security Agreement, dated as of March 21, 2017, by and among Advanced Micro Devices, Inc., a Delaware corporation, AMD International Sales Service, Ltd., a Delaware corporation, ATI Technologies ULC, an Alberta unlimited liability corporation, the financial institutions party thereto from time to time as lenders and Bank of America, N.A., a national banking association, as agent for the lenders |
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About ADVANCED MICRO DEVICES, INC. (NASDAQ:AMD)
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is engaged in offering x86 microprocessors, as a standalone central processing unit (CPU) or as incorporated into an accelerated processing unit (APU), chipsets, and discrete graphics processing units (GPUs) for the consumer, commercial and professional graphics markets, and server and embedded CPUs, GPUs and APUs, and semi-custom System-on-Chip (SoC) products and technology for game consoles. It operates in two segments: the Computing and Graphics segment, which includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics, and the Enterprise, Embedded and Semi-Custom segment, which includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties. Its desktop PC product brands for microprocessors are AMD A-Series, AMD E-Series, AMD FX CPU, AMD Athlon CPU and APU. ADVANCED MICRO DEVICES, INC. (NASDAQ:AMD) Recent Trading Information
ADVANCED MICRO DEVICES, INC. (NASDAQ:AMD) closed its last trading session down -0.58 at 13.82 with 91,565,591 shares trading hands.
