Chipmaker Advanced Micro Devices plans to raise more than $1 billion through offerings of its common stock and senior notes, the company said Tuesday.
AMD said it expects to receive net proceeds for $1.02 billion from the public offerings, which will include a $600 million offering of common stock and a $450 million offering of convertible senior notes. AMD will also grant the offerings’ underwriters an option to purchase $90 million in additional shares of common stock and $67.5 million in additional convertible senior notes.
AMD plans to use the proceeds from the offering to pay down its debt, and for other general corporate purposes, the company said in a news release.
AMD is one of the largest technology employers in Central Texas. AMD is headquartered in Sunnyvale, Calif., but has substantial operations in Austin, where it employs about 1,600 people. The company makes computer processors and graphics cards that are used in personal computers, gaming consoles and servers.
In July, AMD reported better-than-expected profit and sales for the second quarter and projected continued sales growth for the rest of the year. The company reported a profit of $69 million in its second quarter, or 8 cents a share, which was driven in part by the sale of a majority stake in one of its testing and assembly facilities.
Adjusted for one-time gains and expenses, the company reported a loss of $40 million, or 5 cents a share, up nearly 70 percent from the same period a year ago.
Its revenue increased to $1 billion, up 9 percent from the same time a year ago.
The company also reported a return to operating profit for the first time in two years. AMD hasn't had a full profitable year since 2011.
At the time, AMD CEO Lisa Su said based on the strength of its sales in the second quarter, the company was "well positioned to drive growth and market share gains in the second half of the year."
AMD's shares closed Tuesday down 18 cents, or 2.3 percent, at $7.34. The company's shares dropped another 4 percent in after-hours trading Tuesday.