AMD's management is taking another step to keep the company afloat.
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.