Advanced Micro Devices (AMD) is looking to lower its debt, due in 2012, by about $1.4 billion, The Wall Street Journal reports. The chip maker will repay about $1 billion of senior convertible notes, due in 2012, with cash and through the sale of $500 million in eight-year notes and will also buy back $390 million in high-yield debt.

AMD will use proceeds from a $1.25 billion settlement with Intel to pay for the buyback and the note sale, which will be made in a private offering. AMD had $3.67 billion worth of total debt outstanding as of Sept. 26, with $1.88 billion due in 2012.

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