AMD looks to raise US$4 billion to US$5 billion in debt offering: source
Semiconductor companies are increasingly turning to capital markets to fund AI-related investments
Advanced Micro Devices (AMD) launched a four-part debt offering on Thursday, August 13, that could raise between US$4 billion and US$5 billion, according to sources and terms reviewed by Reuters. The company seeks funding flexibility as it funds AI-related investments, data-center expansion, and manufacturing projects. The debt offering includes senior unsecured notes due in 2029, 2031, 2033, and 2036 with initial price discussions ranging from 70 to 115 basis points over US Treasuries.
The proceeds will be utilized for general corporate purposes, potentially including debt repayment. AMD's spokesperson stated, "AMD is committed to maintaining its strong financial balance sheet and we have strong investment grade ratings. We intend to leverage net proceeds from the offering for general corporate purposes." The debt sale is being led by Bank of America, JPMorgan, Barclays, and Wells Fargo, and is expected to settle on August 17.
AMD's move to raise capital follows Intel's recent US$20 billion stock offering to finance its contract chipmaking ambitions. Both companies are expanding their AI and data-center businesses, competing with Nvidia and Intel across multiple processor markets.
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