AMD announced that the company and its subsidiary, AMD International Sales & Service, entered into a loan and security agreement for a principal amount up to $500 million with a group of lenders. Bank of America acted as agent for the lenders.

The proceeds may be used for general corporate purposes, including working capital needs. Availability is limited to a borrowing base of 85% of eligible accounts receivable, less certain reserves. Obligations are secured by the borrowers’ accounts receivable and inventory. The five-year credit line will mature on November 12, 2018. No drawings were made on the closing date of the loan agreement.

“We have made significant progress during the last year strengthening our capital structure to support our strategic growth plans,” said Devinder Kumar, AMD senior vice president and chief financial officer. “We expect to end the fourth quarter of 2013 with cash, cash equivalents and marketable securities, including long-term marketable securities, balances of approximately $1.2 billion and remain committed to maintaining ongoing balances of approximately $1.1 billion, our target optimal level. This secured revolving line of credit provides AMD with greater financial flexibility as we continue transforming AMD for growth across a more diverse set of markets.”

AMD designs and integrates technology that powers personal computers, tablets, game consoles and cloud servers.