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Lehman Bros was critical to AMD

Post by Jenny , 2008-09-22 20:44:44 Source: FiringSquad Editor:Jenny

Tags: Lehman Bros AMD

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Investment firm Lehman Brothers played a crucial role in AMD's survival last summer.

 

Mired with billions in debt as a result of their 2006 purchase of ATI, investment firm Lehman Brothers played a crucial role in AMD's survival last summer. This article from the AP discusses the impact of the financial crisis and how it could affect AMD going forward: 

 

The Lehman-AMD deal is a snapshot of a common type of partnership that could be harder to come by with Lehman's bankruptcy and the disintegration or consolidation of other banks. In AMD's case, Lehman's problems won't affect the Sunnyvale, Calif.-based company's balance sheet, which at the end of June showed AMD holding about $1.6 billion in cash while carrying $5.3 billion in debt. That's because AMD has already spent the proceeds, and its debt offering was sold off by Lehman to other banks or held by its subsidiaries that are now being sold to other firms.

 

There were no clauses that required anything further of AMD other than paying interest on the investment and fulfilling the contracts when they reach their maturity date.

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