Why didn't AMD simply retire the debt? The $500 million doesn't go to operations; it can't. The $400 million+ debt is due in 4 days and must be paid off in its entirety. No matter how you slice it, that's $400 million+ out the window.
This is a refinancing that doesn't improve AMD's growth prospects but merely keep AMD's cash position status quo at the expense of bleeding millions upon millions of additional dollars in interest over the long term.
Dumb move. Why not instead quit screwing around and make products that are actually competitive so you can generate cash rather than borrowing it? Duh, Rory.