AMD Announces Plan To Sell and Lease Back Austin Campus
AMD today announced that it has entered into an agreement to sell and lease-back its “Lone Star Campus” located at 7171 Southwest Parkway in Austin, Texas to 7171 Southwest Parkway Holdings, LP, an affiliate entity of real estate investment company Spear Street Capital. Upon closing, net of all fees, the sale is expected to generate approximately $164 million in cash. The proceeds are expected to be reflected in the company’s first quarter 2013 financial statements when reported on Apr. 18, 2013. At closing, AMD will enter into a 12-year lease with an extension option to continue its operations on the campus. The transaction is expected to close on or about Mar. 26, 2013. Back in November 2012 when AMD announced that it would sell the campus they were hoping to raise between $150-$200 million, so $164 million falls within expectations.
As we reset and restructure AMD for long-term success, we are taking a number of steps designed to optimize our business and monetize assets, said Devinder Kumar, chief financial officer of AMD. The sale of our Austin campus will unlock a significant amount of capital, while the multi-year lease back of our Austin campus reconfirms our long-term commitment to the city that so many AMD employees have called home since 1979.
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