Yorkville Advisors LLC will invest up to an additional $35 million into specialty foundry TowerJazz (Nasdaq: TSEM; TASE: TSEM), under a new amendment to the Standby Equity Purchase Agreement (SEPA).
Last month, TowerJazz used the last of its previous $25 million SEPA with Yorkville fund YA Global Master SPV Ltd. under an agreement signed in August 2009.
The new amendment of the SEPA is under the same terms as the previous amendments. TowerJazz will give Yorkville options, through the end of March 2012, to buy TowerJazz shares at a discount of 3% on the previous day's closing price.
The new deal will increase Yorkville's investment in TowerJazz to $60 million. The investments will dilute the holdings of TowerJazz's current investors, including Israel Corporation (TASE: ILCO).
TowerJazz uses the SEPA as a kind of credit line for acquisitions and other purposes. TowerJazz CEO Russell Ellwanger has said that the company is seeking acquisitions, and that there was a concrete deal in the works, which could be closed by mid-year.
TowerJazz's share closed at $1.60 on Nasdaq on Friday, giving a market cap of $318 million. The share price rose 1.8% by mid-afternoon on the TASE today to NIS 6.04.
Published by Globes [online], Israel business news - www.globes-online.com - on April 25, 2010
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