AMD to Sell Austin, Texas "Lone Star" Campus for Cash

EETimes reports that the company is selling its iconic Lonestar campus in Austin, which currently provides room for about 2,000 employees. AMD expects to sell the property to a commercial real estate investor for about $150 to $200 million and leverage "favorable economic conditions in the Austin Southwest office submarket". AMD is not planning on moving out, but wants to sign a multi-year leaseback agreement.

Even the greatest real estate prices are little incentive for a company with a lot of cash on hand to sell their offices. However, these kind of agreements occasionally come in handy to provide extra cash, which AMD will need in the first quarter of next year. AMD just refinanced a $485 million payment required to pay off debt from a $1.5 billion convertible senior notes offering in August of 2007, but it cannot refinance a $225 million payment that is due to be paid to Globalfoundries in Q1 2013. The proceeds from the Austin campus sale should be able to cover that obligation almost entirely.

AMD's cash reserves stood at $1.30 billion at the end of September, down from $1.77 billion at the end of 2011. AMD previously stressed that it will preserve its cash supply if the economic situation will have a greater impact on its business than anticipated.

 

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  • the1kingbob
    It is sad, AMD products haven't been leaders for some time but they have always been quality products. It is a shame that the workers and engineers are losing their jobs because of the few leaders have failed to take the company in the right direction.
    Hopefully this cash grab can sustain them through their restructure and into growth. At least they aren't firing everyone in Austin.
    20
  • Anonymous
    I would give AMD some of that Powerball money if anyone wins. So sad to see AMD losing so much money, even though they are most likely to blame.
    13
  • madooo12
    shlowmiThey're losing money because the 8 core 4ghz I processor I just bought from them on CyberMonday is "slow"... Even my Grandma commented on how it was totally inadequate for Facebook and Farmville compared to her 5 y/o Core2Duo laptop.It's not because Intel bribes OEMs into not to launch AMD productsIt's not because Intel coerces the tech media into creating this ridiculous perception that AMD CPUs are "slow"It's not because they've had to make hard business decisions because of the revenue losses from items #1 and #2Remember, it's just because they are "slow"

    so your grandma used a bulldozer CPU, but says it's slower than a C2D, an intel atom or AMD brazos will be enough for her
    12
  • Other Comments
  • Anonymous
    I would give AMD some of that Powerball money if anyone wins. So sad to see AMD losing so much money, even though they are most likely to blame.
    13
  • the1kingbob
    It is sad, AMD products haven't been leaders for some time but they have always been quality products. It is a shame that the workers and engineers are losing their jobs because of the few leaders have failed to take the company in the right direction.
    Hopefully this cash grab can sustain them through their restructure and into growth. At least they aren't firing everyone in Austin.
    20
  • Anonymous
    They're losing money because the 8 core 4ghz I processor I just bought from them on CyberMonday is "slow"... Even my Grandma commented on how it was totally inadequate for Facebook and Farmville compared to her 5 y/o Core2Duo laptop.

    It's not because Intel bribes OEMs into not to launch AMD products
    It's not because Intel coerces the tech media into creating this ridiculous perception that AMD CPUs are "slow"
    It's not because they've had to make hard business decisions because of the revenue losses from items #1 and #2

    Remember, it's just because they are "slow"
    -22