NXP Semiconductors has drawn down another $300m from its revolving loan facility which means it has drawn down $600m from the total $692m available under the credit facility.
NXP appears to be suffering negative cash flow. At the end of March 2009, it had $1.71bn in cash, but at the end of May 2009, it had $1.14bn in cash.
"We have drawn $300 million under our revolving credit facility. This is a proactive financial decision to further strengthen our solid liquidity position," said chief financial officer, Karl-Henrik Sundstrom.
NXP, which was loaded up with $6bn worth of debt by its private equity owners Kohlberg Kravis and Roberts, which required NXP to pay some $480m in interest payments every year, is also trying to buy back $300m worth of its debt to cut the level of interest repayments.
It is possible that the $300m borrowed under the revolver is to fund this bond buy back initiative, but the company is not confirming this.
In its first attempt to reduce the $6bn debt mountain, NXP only managed to reduce its debts by $465m.