Fairchild Semiconductor

(FCS)

said Tuesday that it completed the refinancing of its senior credit facility. This will reduce net debt by $50 million.

The new $475 million facility includes a $375 million term B loan and a $100 million revolving line of credit and replaces an existing $444.4 million term B-3 loan and $180 million revolving line of credit.

Based on current LIBOR interest rates, the chipmaker expects to save about $2.5 million annually in pre-tax interest expenses.

"Our strong balance sheet and record of consistent cash flow enabled us to secure a very favorable interest rate," the company said. "These actions exemplify Fairchild's commitment to managing our balance sheet to deliver superior shareholder value."

Shares were trading at $16.25, down 33 cents, or 2% Tuesday.

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