Fairchild Semiconductor Reduces Debt Another $122 Million

Fairchild Semiconductor (NYSE: FCS), a leading global supplier of high performance power and mobile products, today announced that on July 30, 2010 it voluntarily prepaid its B-1 incremental term loan of $121.6 million. The incremental B-1 loan, under its existing senior credit facility, had an interest rate of Libor + 2.50 percent. At current interest rates, this reduction in debt saves approximately $3.2 million annually in net interest expense.

Fairchild reduced total debt by $213 million or 40 percent since the start of 2009 to a record low $322 million. The remaining debt carries an interest rate of Libor +1.50 percent.

“We continue to improve our product mix and cost structure resulting in greater profitability and cash flow,” said Mark Frey, Fairchild’s executive vice president and CFO. “We have the strongest balance sheet in our history and remain committed to further debt reduction to improve earnings and valuation.”

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