Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Advanced Micro Devices Sells, Leases Back Campus

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Cash-strapped semiconductor maker Advanced Micro Devices (NASDAQ: AMD  ) agreed Tuesday to sell its 7171 Southwest Parkway Austin, Texas, campus to real estate investment company Spear Street Capital for approximately $164 million, net of fees and closing costs. AMD isn't actually moving out of the campus, however, but rather doing a "sale-and-leaseback" transaction in which it monetizes its real estate assets and then pays for the privilege of continuing to occupy them. AMD is entering into a 12-year lease agreement for the premises as part of the transaction.

Closing is slated for March 26, and AMD says it will record the extra cash in its Q1 financial results, due out April 18.

AMD justified the sale by saying that it has a "strategy to reduce investments and capital in non-core parts of the business, including real estate." And in line with this strategy, the company has entered into similar sale-and-leaseback transactions with its Sunnyvale, Calif., headquarters and its Markham, Ontario, facility as well. 

That said, the company admitted it will take a $50 million loss on the sale. One factor also pertinent to the raising of cash in this manner -- AMD currently has $1 billion more debt than cash on its books and was free cash flow negative to the tune of $471 million in 2012.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2308974, ~/Articles/ArticleHandler.aspx, 4/30/2016 3:26:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

Today's Market

updated 6 hours ago Sponsored by:
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASD 4,775.36 -29.93 -0.62%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/29/2016 4:00 PM
AMD $3.55 Down -0.06 -1.66%
Advanced Micro Dev… CAPS Rating: **