AMD borrows $4.75 billion through senior unsecured debt offering for general corporate purposes

AMD Secures $4.75 Billion in Debt Offering

AMD announced a new senior unsecured debt offering on Thursday, raising $4.75 billion. The company stated that the proceeds are intended for general corporate purposes, which may include the repayment of existing debt. This follows a similar move by Intel earlier in the week.

Offering Details and Market Confidence

The debt offering is structured into four tranches: $1.25 billion at 4.6% due in 2029, $1.50 billion at 5% due in 2031, $1 billion at 5.25% due in 2033, and $1 billion at 5.5% due in 2036. The yields to maturity range from 4.64% to 5.532%. Spreads over comparable U.S. Treasuries, ranging from 43 to 90 basis points, suggest market confidence in AMD's financial stability. Moody's and S&P are expected to rate the securities A1 and A, respectively.

Strategic Capital for Growing Needs

While AMD did not specify how the $4.75 billion will be spent, the additional capital provides flexibility for its increasingly capital-intensive business. At the end of Q2 2026, AMD held approximately $13.1 billion in cash and equivalents, with total debt at $3.2 billion. The company's unconditional commitments, including wafer purchases and cloud service agreements, totaled around $12.2 billion at the end of 2025, with $8.5 billion due in 2026.

Increasing Capital Intensity

AMD's working capital requirements are growing, with inventories reaching approximately $8.47 billion and accounts payable climbing to $5.36 billion by the end of Q2. The company also increased its spending on property and equipment, investing $1.20 billion in the first half of 2026, compared to $494 million in the same period a year prior. This debt offering provides resources to manage these expanding financial needs.