AMD Plans Investment-Grade Bond Sale of Up to $5 Billion
AMD plans to raise as much as $5 billion through what could become the largest investment-grade bond offering in the company’s history, joining a wave of corporate debt issuance fueled by the artificial-intelligence boom. The final size of the offering has not been determined and could be adjusted based on market demand, people familiar with the matter said. AMD plans to issue the bonds in four tranches with maturities ranging from three to 10 years, according to another person familiar with the matter. The initial price guidance for the 10-year bonds is a spread of 115 basis points over U.S. Treasury yields. The person requested anonymity because the information has not been made public. The offering comes as AMD increases investment to meet a surge in demand for computing power driven by the AI boom. The company recently announced agreements with Anthropic PBC and Microsoft that will expand the use of its AI chips. AMD said in a filing that it would use the bond proceeds for general corporate purposes, which could include repaying debt. The company has $875 million of bonds maturing next month. Barclays, Bank of America, Citigroup, JPMorgan Chase, Morgan Stanley and Wells Fargo are handling the offering. JPMorgan and Citigroup declined to comment. AMD and the other institutions did not immediately respond to requests for comment.
The final size of the offering has not been determined and could be adjusted based on market demand, people familiar with the matter said.
AMD plans to issue the bonds in four tranches with maturities ranging from three to 10 years, according to another person familiar with the matter. The initial price guidance for the 10-year bonds is a spread of 115 basis points over U.S. Treasury yields. The person requested anonymity because the information has not been made public.
The offering comes as AMD increases investment to meet a surge in demand for computing power driven by the AI boom. The company recently announced agreements with Anthropic PBC and Microsoft that will expand the use of its AI chips.
AMD said in a filing that it would use the bond proceeds for general corporate purposes, which could include repaying debt. The company has $875 million of bonds maturing next month.
Barclays, Bank of America, Citigroup, JPMorgan Chase, Morgan Stanley and Wells Fargo are handling the offering. JPMorgan and Citigroup declined to comment. AMD and the other institutions did not immediately respond to requests for comment.