AMD gets $622 million Mubadala injection

Advanced Micro Devices Inc., the second-largest maker of PC and server microprocessors, said Friday it received a $622 million investment from a unit of Abu Dhabi-based Mubadala Development Co.

The United Arab Emirates investment firm received 49 million newly-issued shares at $12.70 each, the closing price Thursday of AMD's common stock, representing an 8.1 percent stake.

AMD received about $608 million, after reimbursing Mubadala for approximately $14.6 million in expenses. The company said it will use the proceeds for general corporate purposes including investing in research and development, product innovations and manufacturing.

The company said Mubadala will not receive any board representation as part of the non-controlling, minority investment. This transaction isn't therefore subject to review by the Committee on Foreign Investment in the U.S.

Merrill Lynch acted as financial adviser to Advanced Micro Devices. Lehman Brothers acted as lead financial adviser to Mubadala and Morgan Stanley acted as co-financial adviser.

AMD shares rose 45 cents, or 3.5 percent, to $13.15 in premarket trading.