Tower can use up to $30 million of the credit line by June 2013.
Specialty foundry Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) has obtained a ¥4 billion ($50 million) credit line for its Nishiwaki fab in Japan from GE Capital. The loan carries the TIBOR rate or LIBOR rate plus 2.6% per annum, whichever is higher, and is due to be repaid in 2015. Tower can use up to $30 million of the credit line by June 2013.
Tower CFO Oren Shirazi said, "We believe this agreement and the previously announced government cap-ex grant approval, together with the new customers that we are engaging for manufacturing in the Nishiwaki fab, are strong enablers for our business and operational flexibility allowing our growth strategy in Japan and worldwide."
Tower's share price rose 0.85% by midday on the TASE today to NIS 3.70, after falling 0.5% on Nasdaq yesterday to $0.95, giving a market cap of $302 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 9, 2012
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