AMD is planning to sell and lease-back its Austin, Texas-based "Lone Star Campus" to 7171 Southwest Parkway Holdings, an affiliate entity of real estate investment company Spear Street Capital.
Upon closing, net of all fees, the sale is expected to generate approximately $164m in cash.
AMD plans to enter into a 12-year lease with an extension option to continue its operations on the campus.
The sale of AMD's Austin campus is in keeping with the company's strategy to reduce investments and capital in non-core parts of the business, including real estate.
In 1998, the company sold and currently leases-back its headquarters in Sunnyvale, California.
In 2008, it sold and currently leases-back its major site in Markham, Ontario, Canada.
"As we reset and restructure AMD for long-term success, we are taking a number of steps designed to optimise our business and monetise assets," said Devinder Kumar, chief financial officer of AMD.
AMD employs approximately 1,900 people in Austin.
Unlock capital
"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," said kumar.
The company expects to record a special charge of approximately $50m in the first quarter of 2013 primarily related to the difference between the sale proceeds and the carrying value of the property.
The proceeds are expected to be reflected in the company's first quarter 2013 financial statements when reported on Apr. 18, 2013. The transaction is expected to close on or about Mar. 26, 2013.
