AMD plans to issue investment-grade bonds to raise up to $5 billion
AMD plans to issue up to $5 billion in investment-grade bonds to raise funds to meet the surge in computing power demand brought about by the artificial intelligence boom. This bond issuance may set a record in the company's history, with maturities ranging from 3 to 10 years. The proceeds will be used for general corporate purposes and to repay upcoming debts. Barclays, JP Morgan, and several other investment banks are responsible for underwriting
AMD plans to raise up to $5 billion by issuing what could be the largest investment-grade bond in the company's history, joining the ranks of companies issuing bonds driven by the AI boom.
According to informed sources, the final size of the bond issuance has not yet been determined and may be adjusted based on market demand.
Another source indicated that AMD plans to issue bonds in four tranches, with maturities ranging from 3 to 10 years. The initial price guidance for the 10-year bonds is set at 115 basis points above U.S. Treasury yields. Due to the confidential nature of the information, the source requested anonymity.
This bond issuance comes as AMD increases investments to meet the surging demand for computing power driven by the AI boom. The company recently announced agreements with Anthropic PBC and Microsoft to expand the application of its AI chips.
In the submitted documents, AMD stated that the proceeds from this bond issuance will be used for general corporate purposes, which may include debt repayment. AMD has $875 million in bonds maturing next month.
Barclays, Bank of America, Citigroup, JP Morgan, Morgan Stanley, and Wells Fargo are responsible for the bond issuance.
JP Morgan and Citigroup declined to comment. AMD and the other institutions did not immediately respond to requests for comment
