Specialty foundry Tower Semiconductor (Nasdaq: TSEM ; TASE: TSEM) of Migdal Ha'Emek has announced that it the successful completion of its rights issue of convertible debentures. Gross proceeds of the issue were approximately $48 million.
Tower CEO Russell Ellwanger said, "We are very pleased with the success of this offering and especially with the strong vote of confidence given to Tower by our shareholders and the financial community, as demonstrated by the exercise of approximately 96% of the total rights. We achieved substantial fourth quarter over third quarter revenue growth of 50%. This fundraising will allow us to continue to meet our customers' needs and help enable their success, as we drive the company towards further growth."
The debentures will be listed for trade on the Nasdaq Capital Market under the symbol TSEMG and the Tel Aviv Stock Exchange under the symbol TSEM.C2, on or about January 18. They are convertible to ordinary shares in Tower at a ratio of one share for $1.10 worth of bonds, at nominal value, and bear 5% interest. They are redeemable on January 12, 2012.
Tower's fourth quarter sales are expected to total about $31 million, 50% more than in the third quarter. Total 2005 sales are expected to be about $102 million. However, the company lost $158 million on sales of $71 million in the first three quarters of 2005.
Tower shares closed at $1.62 on Friday, giving the company a market cap of $108 million.
Published by Globes [online], Israel business news - www.globes.co.il - on January 15, 2006