Tower institutional offering oversubscribed

The chip maker will expand its share offering by over $5 million.

Chip maker Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) said that its share placement to institutional investors was oversubscribed by 33%, and that it raised the amount of the offer to $21.1 million.

About ten days ago, Tower said it was raising $15.8 million from institutional investors. Today, the company said that demand was actually 33%, or $5.3 million, higher.

Tower decided to increase the placement to $21.1 million. Tower will issue 5.36 million shares, at a price of NIS 3.73 per share, which is 4% higher than the share's closing price on the Tel Aviv Stock Exchange (TASE) yesterday.

Tower will also issue warrants for 1.34 million shares, with terms similar to its Series 6 warrants currently traded in Tel Aviv.

Tower CEO Russell Ellwanger said, "We are pleased at the market reception of our achievements and to have received many requests to increase the investment in our company, and at their willingness to do so in equity at a premium to the market. These funds are important to continue to fuel our investments in differentiated, high value, high margin platforms and to execute the cross-qualifications of the Migdal-Ha'Emek site to Jazz customers, as well as the NPB site to Tower customers."

Published by Globes [online], Israel business news - - on September 14, 2009.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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