Newport Beach chipmaker Conexant Systems Inc. said Wednesday it renewed a $20 million line.
The credit line, from Silicon Valley Bank, is good through 2013 and is based on accounts receivable at Conexant.
It replaces a $15 million credit line that expires this year, the company said.
“We are pleased to extend our relationship with Silicon Valley Bank and secure a three-year, $20 million credit line with lower interest rates than our previous facility,” said Jean Hu, Conexant’s chief financial officer. “Our renewed credit facility will continue to provide us with financial flexibility as we focus on driving business growth.”
The new credit line comes a day after Conexant said it agreed to sell land next to its headquarters for $23.5 million.
The company said it’s selling the property—consisting of 25 acres that have been eyed for residential development, and two leased buildings—to real estate investment group Uptown Newport LP.
The moves are part of a big restructuring effort by Conexant to clean up its balance sheet by raising capital and paying down debt.
Earlier this year, the company did two stock sales and also sold some patent rights to raise funds.
Conexant’s chips go into multifunction office printers, digital picture frames, PC speakers and other devices.
Conexant had a recent market value of $130 million.
