TOKYO & KYOTO, Japan & MIGDAL HAEMEK, Israel--(BUSINESS WIRE)--Jun. 19, 2014--
TowerJazz, the global specialty foundry leader, today announced the
signature of a definitive five year term loan agreement with JA Mitsui,
a Japanese leading financing institute, to provide TowerJazz Panasonic
Semiconductor Company (TPSCo), of which Tower Semiconductor Ltd. has the
majority holding, with a term loan of 8.8 billion Japanese Yen
(approximately $85 million). The loan will carry an annual interest of
the TIBOR rate plus approximately 2% per annum, will mature in mid 2019
and will be repaid in seven equal semi-annual installments which will
commence two years after signing. The TIBOR rate applicable to the
interest payments will be the six month TIBOR (Tokyo Interbank Offered
Rate). The loan will come in lieu of an 8.8 billion Yen bridge-loan
received from Panasonic, as presented in the company’s balance sheets as
of March 31, 2014.
"We are excited to engage TowerJazz Panasonic Semiconductor Company with
this loan agreement and we look forward to work together as the new
company will achieve its strategic goals. We have invested much to study
the new company’s business plan and are pleased with its projections and
existing assets base. We are happy TPSCo chose us for this term loan,”
stated a JA Mitsui spokesman.
"I am extremely pleased that we have engaged with JA Mitsui for this
term loan financing,” said Guy Eristoff, CEO of TowerJazz Panasonic
Semiconductor Company. “We believe this agreement and the previously
announced long term volume contract signed with Panasonic, as well as
other foundry customer engagements which we are currently negotiating
for manufacturing in our fabs, are strong enablers for our business and
operational flexibility allowing our growth strategy in Japan and
worldwide.”
About JA Mitsui
JA Mitsui Leasing, Ltd., a Japanese financial institute with
headquarters in Higashi Gotanda, Shinagawa-ku, Tokyo, Japan, provides,
together with its subsidiaries leasing, installment sales, financing,
and other associated services in Japan and internationally. The company
offers finance lease, operating lease, and lease with purchase options.
It provides cross-border leasing for construction machinery, machine
tools, molding machine, and other equipment from Japanese manufacturers
and trading companies to end users abroad; and other services, including
automobile lease and financing, ecology related services, real estate
leasing, factoring services, and used equipment sales. For more
information, please visit http://www.jamitsuilease.co.jp/en.
About TowerJazz
Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM), its fully owned
U.S. subsidiary Jazz Semiconductor, Inc. and its fully owned Japanese
subsidiary TowerJazz Japan, Ltd., operate collectively under the brand
name TowerJazz, the global specialty foundry leader. TowerJazz
manufactures integrated circuits, offering a broad range of customizable
process technologies including: SiGe, BiCMOS, Mixed-Signal/CMOS, RF
CMOS, CMOS Image Sensor, integrated Power Management (BCD & 700V), and
MEMS capabilities. TowerJazz also provides a world-class design
enablement platform for a quick and accurate design cycle as well as
Transfer Optimization and development Process Services (TOPS) to IDMs
and fabless companies that need to expand capacity.
To provide multi-fab sourcing and extended capacity for its customers,
TowerJazz operates two manufacturing facilities in Israel (150mm &
200mm), one in the U.S. (200mm), and four in Japan (200mm & 300mm).
Three of the Japan fabs are available through TowerJazz Panasonic
Semiconductor Company (TPSCo), established with Panasonic
Corporation of which TowerJazz has the majority holding. Through TPSCo,
TowerJazz offers leading edge 45nm CMOS, 65nm RF CMOS and 65nm 1.12um
pixel technologies. For more information, please visit: www.towerjazz.com.
About TowerJazz Panasonic Semiconductor Company
TowerJazz Panasonic Semiconductor Company Ltd. (TPSCo) is a Joint
Venture, 51% owned by Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE:
TSEM) and 49% owned by Panasonic Corporation (NASDAQ ADS: PCRFY, TYO:
6752). TPSCo has three manufacturing facilities in Hokuriku, Japan which
have been producing large scale integrated circuits for over 20 years.
Areas of process technology focus include high dynamic range Image
Sensors (CIS and CCD), Integrated Power Devices (BCD, SOI, LDMOS) and
high frequency Silicon RFCMOS. With over 120 qualified Silicon process
flows on 200mm and 300mm substrates from super micron to 45nm, as well
as internal back end processing, assembly and test services, TPSCo
enables both IDMs and fabless companies with unparalleled semiconductor
manufacturing quality and technology at affordable prices, including
in-house turnkey services. For more information, please visit www.towerjazz.com.
Safe Harbor Regarding Forward-Looking Statements
This press release includes forward-looking statements, which are
subject to risks and uncertainties. Actual results may vary from those
projected or implied by such forward-looking statements. A complete
discussion of risks and uncertainties that may affect the accuracy of
forward-looking statements included in this press release or which may
otherwise affect Tower and/or Jazz’s business is included under the
heading "Risk Factors" in Tower’s most recent filings on Forms 20-F,
F-3, F-4 and 6-K, as were filed with the Securities and Exchange
Commission (the “SEC”) and the Israel Securities Authority and Jazz’s
most recent filings on Forms 10-K and 10-Q, as were filed with the SEC,
respectively. Tower and Jazz do not intend to update, and expressly
disclaim any obligation to update, the information contained in this
release.
Source: TowerJazz
TowerJazz
Noit Levi, +972 4 604 7066
Noit.levi@towerjazz.com
or
GK
Investor Relations
Kenny Green, 646-201-9246
towerjazz@gkir.com