By Saeed Azhar and Rashika Singh
Aug 13 (Reuters) - Advanced Micro Devices on Thursday launched a four-part debt offering that could raise between $4 billion and $5 billion, according to a source and terms reviewed by Reuters, as the chipmaker seeks funding flexibility amid a broader wave of tech-sector fundraising driven by investments in AI.
The offering includes senior unsecured notes due in 2029, 2031, 2033 and 2036.
Initial price discussions were set at about 70 basis points over U.S. Treasuries
for the 3-year notes, 90 basis points for the 5-year tranche, 100 basis points for the 7-year notes and 115 basis points for the 10-year debt.
The company said it intends to use the proceeds for general corporate purposes, which may include the repayment of debt.
"AMD is committed to maintaining its strong financial balance sheet and we have strong investment grade ratings. We intend to leverage net proceeds from the offering for general corporate purposes," an AMD spokesperson said.
The offering underscores how semiconductor companies are increasingly turning to capital markets as they race to fund AI-related investments, data-center expansion and manufacturing projects.
Earlier this week, Intel raised $20 billion in an upsized stock offering to help finance its contract chipmaking ambitions.
AMD also filed with the U.S. Securities and Exchange Commission earlier on Thursday in connection with the offering, though the filing did not disclose specific terms of the deal.
The debt sale comes as AMD continues to expand its AI and data-center businesses, where it competes with larger rival Nvidia and challenges Intel across multiple processor markets.
Bank of America, JPMorgan, Barclays and Wells Fargo are leading the debt sale, according to the term sheet. The bonds are expected to settle on August 17.
Earlier this month, AMD forecast third-quarter revenue above Wall Street estimates and said data-center sales would more than double by 2027, underscoring strong demand for its AI-focused chips.
(Reporting by Rashika Singh in Bengaluru; Editing by Shreya Biswas)
