As we seek to increase profitability, we are undertaking a comprehensive program designed to streamline our corporate-wide support organization and reduce SGA costs. Fourth quarter SGA expenses included a charge of 3.3 million associated with employee reduction and separation expenses, which we expect to yield annualized savings of around 8 million. We intend to continue this process during 2006 with the goal of not only reducing costs, but also improving operational effectiveness.
During the fourth quarter we completed a series of financing initiatives designed to improve our liquidity. We completed a NT1.8 billion (approximately 54 million) 5-year secured term loan with a group of Taiwanese lenders, and we replaced our 30 million secured revolving credit facility with a new 100 million senior secured revolver that is available through November 2009. In addition our chairman, James Kim, and members of his family, subscribed to an offering of 100 million of 6.25 convertible subordinated notes due 2013, the proceeds of which were used to repurchase 100 million of 5.75 convertible notes due June 1, 2006.
We believe that these initiatives, together with improved cash flow from business operations, have enhanced our financial flexibility. We currently have sufficient resources to retire the remaining '06 convertible notes at maturity and based on current forecasts we believe we will have sufficient liquidity available to satisfy the 146 million of 5 convertible notes due March 2007. As previously announced, during the first quarter of 2006 we purchased in the open market 30 million face value of our outstanding 471 million aggregate principal amount of 9.25 Senior notes due February 2008.