Business Context and Reporting Period
This Form 8-K was filed by Advanced Micro Devices, Inc. on December 27, 2006. The report discloses a specific financial event involving the creation of a direct financial obligation by an indirect wholly-owned subsidiary, AMD Fab 36 Limited Liability Company & Co. KG.
Key Financial Metrics
- New Borrowing: $247,800,555.34
- Total Outstanding Principal: Approximately $892,800,555
- Facility Limit: EUR 700,000,000 (drawn in full)
- Interest Rate: 7.115630% for the selected three-month period
- Lenders: Consortium led by Dresdner Bank AG
Material Changes
The filing reports an increase in debt obligations under an existing Term Loan Facility Agreement dated April 21, 2004, and amended on October 10, 2006. The subsidiary borrowed an additional $247.8 million, bringing the aggregate principal amount outstanding to approximately $892.8 million. The filing indicates that the facility has been drawn in full.
Outlook and Risks
The filing does not provide forward-looking guidance, management commentary on future performance, or specific risk factors beyond the terms of the loan. The interest rate is variable, resetting at the beginning of each new interest period (one, two, or three months), with the current period set at three months.
Investor Verification Checklist
- Verify the total debt load of approximately $892.8 million against the company's most recent 10-K or 10-Q filings.
- Confirm the impact of the 7.115630% interest rate on the company's projected interest expense.
- Review the terms of the Facility Agreement to understand covenants and repayment schedules.
- Assess the liquidity position of the subsidiary and the parent company given the facility is fully drawn.