Tower Semiconductor (Nasdaq: TSEM; TASE: TSEM), which trades under the name TowerJazz, has announced it an agreement with its lender, Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE:WFC) to extend its credit lines from September 2011 to September 2014.
Under the agreement, the four-year lines totaling $45 million will bear an interest rate equal to, at the company’s option, the USD LIBOR rate plus a margin ranging from 2.25% to 2.75% per annum, or the lender’s prime rate plus a margin ranging from 0.50% to 1.00%.
On March 31, 2010, outstanding borrowings under Wachovia Capital Finance Corporation (Western), now part of Wells Fargo Capital Finance, were $22 million.
The company said it was continuing to work with its institutional bondholders and Israeli lender banks to restructure and re-finance its long-term debt.
Separately, Tower announced today that it had licensed its Y-Flash Non-Volatile Memory (NVM) technology to what it described as a worldwide leading digital foundry.
“That a digital foundry leader chose to license our NVM technology is a substantial confirmation of its capability to enable, among others, fully differentiated power management platforms," said TowerJazz CEO Russell Ellwanger.
Tower Semiconductor has a market cap of $300 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2010
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