Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE:TSEM) is considering raising money on the Tel Aviv Stock Exchange for the first time since 2007.

Sources inform "Globes" that over the next two weeks the company will conduct a road show at investment houses in Israel in order to raise debt of $30-40 million. Depending on the response, Tower will decide whether to move ahead with the offering and in what manner - whether a straight bond offering a conversion bonds. Leader Capital Markets and Clal Finance are expected to be lead underwriters for the offering.

The debt raised, if it is implemented, will be carried out using an off-the-shelf prospectus filed by the company to the Israel Securities Authority, which is no way related to a prospectus to raise $50 million, which was submitted to the US Securities Exchange Commission (SEC).

Over the past two years, Tower Semiconductor, led by CEO Russell Ellwanger has raised $60 million from the US Yorkville investment fund for a share allocation which was subsequently sold on the market.

The aim of the planned TASE offering is to repay $130 million of bonds over the next two years.

Tower's share price rose 1.25% on the TASE today to NIS 5.28. But in morning trading on Nasdaq the share price was down 1.36% to $1.45, giving a market cap of $334.61 million.

Published by Globes, Israel business news - www.globes-online.com - on October 6, 2010

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