Intersil Corporation announced that it has executed a new five year $325 million revolving credit agreement, which replaces the current long-term debt. The after-tax interest rate will be approximately two percent.

"Our business model and history of strong free cash flow allowed us to obtain very favorable terms," said Jonathan Kennedy, Senior Vice President and Chief Financial Officer. "The new facility will reduce our cost of capital while providing flexibility to pursue our business objectives."

Third quarter 2011 GAAP earnings will be impacted by approximately $8 million in non-cash costs associated with the early retirement of our existing long term debt.