AMD plans $890m reduction in debt

AMD hopes to cut its total outstanding debt to $485m

AMD has announced a series of moves designed to cut its total outstanding debt by around $890m (£533m).

The company will spend $390m (£233m) in cash to pay off some of its 7.75 per cent high yield debt, which had been due by 2012.

AMD will also purchase $500m (£300m) in senior notes which the company hopes to redeem for as much as $1bn (£600m). The chip maker hopes that the moves will cut its total outstanding debt to $485m (£290m).

The announcement follows closely on the heels of a settlement of AMD's anti-trust lawsuit with Intel, in which AMD will receive a $1.25bn (£750m) payment in exchange for dropping its legal complaints.

The debt payments are part of a larger plan by AMD to improve its financial picture in the wake of a rough period.

A major part of the strategy was executed earlier this year when AMD completed its plan to spin off its fabrication arm as the Global Foundries corporation.