Bank of China contributes to a $3 billion USD syndicated sustainability-linked revolving credit facility to Advanced Micro Devices for refinancing and general corporate purposes

Project narrative

On April 29, 2022, a syndicate of 12 banks — including the Los Angeles Branch of the Bank of China (BOC) — entered into a $3,000,000,000 USD syndicated sustainability-linked unsecured revolving credit facility (RCF) agreement with Advanced Micro Devices, Inc. (AMD) — a Delaware-incorporated American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets listed on the Nasdaq Stock Market — for refinancing and general corporate purposes. This RCF carried a maturity period of five years, a final maturity date of April 29, 2027, and a variable interest rate based on adjusted Term SOFR (SOFR + 0.10%) or an alternate base rate (the highest of the prime rate from Wells Fargo Bank, the Federal Funds Rate plus 0.50%, or one-month Adjusted Term SOFR plus 1%) plus an applicable margin based on the borrower's credit ratings from Moody’s and Standard * Poor's, ranging from 0.625% for Term SOFR loans and 0.00% for base rate loans for debt ratings of greater than or equal to A+ or A1 to 1.250% for Term SOFR loans and 0.25% for base rate loans if the rating was equal to or less than BBB or Baa2. As the borrower's rating was A- or A3 at signing, the margin was 0.875% for Term SOFR loans (which, including the adjustment, means the margin was SOFR plus 0.975%) and 0.000% for base rate loans. The RCF contained a commitment on the average daily unused portion of the RCF based on the borrower's credit rating ranging from 0.05% for debt ratings greater than or equal to A+ or A1 and 0.125% if the rating was equal to or less than BBB or Baa2. As the borrower's rating was A- or A3 at signing, the commitment fee was 0.080%. This RCF was sustainability-linked, with a pricing component that would adjust (increase or decrease) the interest rate margin (5 basis points (bps) ratchet) and commitment fee (1 bps ratchet) based on AMD's meeting or missing targets related to greenhouse gas emissions. The RCF had a $200 million USD sub-limit for the issuance of letters of credit. The RCF included customary affirmative and negative covenants customary and a financial covenant requiring that, at the last day of each fiscal quarter, the borrower have a consolidated interest coverage ratio not less than 3.00:1.00. The proceeds were to be used by the borrower for working capital and general corporate purposes and to replace (refinance) the borrower's existing $500 million USD credit agreement dated June 7, 2019, which had all remaining commitments terminated. In addition to BOC, the following lenders contributed to the loan syndicate: Wells Fargo Bank, N.A., Bank of America, N.A., JPMorgan Chase Bank, N.A., Barclays Bank Plc, the New York Branch of Credit Suisse AG, Goldman Sachs Bank USA, Morgan Stanley Bank N.A., MUFG Bank, Ltd., Citibank, N.A., the Bank of New York Mellon, and Standard Chartered Bank plc. Wells Fargo Bank served as administrative agent, swingline lender, and issuing lender for letter of credit. Wells Fargo Securities, LLC, BofA Securities, Inc., Barclays Bank, Credit Suisse Loan Funding LLC, and JPMorgan Chase Bank served as joint lead arrangers and joint bookrunners. Bank of America, Barclays Bank, the New York Branch of Credit Suisse, and JPMorgan Chase Bank served as co-syndication agents. Wells Fargo Securities, LLC served as sole sustainability structuring agent. As of December 31, 2022, the borrower had no outstanding borrowings under the RCF. On September 22, 2023, the lending syndicate entered into an amendment agreement for the borrower to adjust its structure after it had acquired Xilinx. As of September 30, 2023, the borrower had no outstanding borrowings under the RCF. No funds were drawn under this RCF in 2023. As of December 28, 2024, the borrower had no outstanding borrowings under the RCF.