Re-Financing Substantially Reduces 2015 and 2016 Principal Payments
from $101 Million to $24 Million
MIGDAL HAEMEK, Israel--(BUSINESS WIRE)--Oct. 27, 2014--
TowerJazz,
the global specialty foundry leader, today announced that it re-financed
its existing bank debt, replacing the present loans previously scheduled
to be repaid during the coming two years, with a $111 million term loan
maturing by October 2018.
This re-financing substantially reduces the principal payments for 2015
and 2016 from $101 million to $24 million. Interest on the loans is USD
LIBOR rate plus 3.9% per annum. The schedule of the $111 million loans
is $10 million principal payment during each of 2014 and 2015, $14
million during 2016, $56 million during 2017 and $21 million during 2018.
The agreement with the banks also contains a mechanism for prepayment of
principal based on excess cash flow the company may incur, as well as
customary fees and financial ratios which are aligned with the company's
business plan.
“After performing due diligence on our business plans and financial
forecasts, the lending banks have demonstrated their belief in the
company by providing this long-term loan,” said Russell C. Ellwanger,
TowerJazz’s CEO. “Built upon the foundation of very strong organic
growth and the strategic, financial and operationally accretive nature
of the Panasonic transaction, this term loan maturing end of 2018 will
further enhance our positioning in the market and enable us to more
strongly invest in our strategic plans.”
About TowerJazz
Tower Semiconductor Ltd. (NASDAQ: TSEM, TASE: TSEM) and its fully owned
U.S. subsidiary Jazz Semiconductor, Inc. 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 and 700V), and
MEMS. 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 and 200mm), one in the U.S. (200mm) and
three additional facilities in Japan (two 200mm and one 300mm) through TowerJazz
Panasonic Semiconductor Co. (TPSCo), established with Panasonic
Corporation of which TowerJazz has the majority holding. Through TPSCo,
TowerJazz provides leading edge 45nm CMOS, 65nm RF CMOS and 65nm 1.12um
pixel technologies. For more information, please visit www.towerjazz.com
and www.tpsemico.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 TowerJazz’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 Investor Relations Contact:
Noit Levi,
+972-4-604-7066
noit.levi@towerjazz.com
or
GK
Investor Relations:
Kenny Green, 646-201-9246
towerjazz@gkir.com
