Independent chip foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) expects to issue $1.25 million in shares to US private equity fund Yorkville.
The move will bring Yorkville's investment in Tower to about $2.15 million. Yorkville has committed to invest up to $25 million in the chip maker.
Migdal Ha'emek-based Tower will allot 1.25 million shares to Yorkville today at a price of $1 per share. Tower said, "The shares are issued as part of Yorkville's commitment to buy shares from time to time, up to $25 million."
The deal with the Yorkville-managed YA Global Master SPV fund was reported by Tower along with its second quarter results. The standby equity line allows Tower to issue shares up to the $25 million limit, at a 3% discount to the market price of the shares.
At the time the agreement was reached, Tower sources said that currently the company did not intend to use the credit line, but since then Tower has allotted about $2.1 million worth of shares to Yorkville, representing about 8.6% of the total.
Tower shares closed yesterday at $1.03, giving a market cap of $164.8 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 9, 2009
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