Improved operating margins at semiconductor producer Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) have allowed it to prepay another $30 million in bank debt, and restructure an additional $160 million.
Tower closed the deal with lenders Bank Leumi (TASE: LUMI) and Bank Hapoalim (TASE: POLI).
About $160 million of principal amount was rescheduled to be paid in 10 quarterly installments, from the third quarter of 2013 through the fourth quarter of 2015. Tower will prepay $30 million, in addition to $20 million previously announced.
Tower does business as TowerJazz since acquiring Jazz in 2008.
TowerJazz CFO Oren Shirazi said, “Following the previous announced $80 million bonds to notes exchange, the extension of the $45 million Wells Fargo credit lines, with due dates of 2015 and 2014 respectively, a conversion of approximately $30 million of Israeli bonds, and with this additional banks agreement, we have now refinanced/ restructured more than $350 million of debt.
TowerJazz CEO Russell Ellwanger said, "The signing of this definitive agreement with our Israeli lender banks was the most significant step towards the execution of our comprehensive debt restructuring plan."
Tower shares closed at $1.50 yesterday, giving a market cap of $310.4 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2010
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