Tower Semi Receives Final Installment from Partners
Tower Semiconductor Ltd. (Migdal Haemek, Israel) announced the receipt from its strategic partners of the fifth and final Fab 2 milestone payment in the amount of $25.1 million. In addition, Tower announced that it has closed the previously announced amendment to its credit facility agreement for the continued financing of Fab 2.
According to the new amendment to the credit facility agreement, the repayment of over $200 million of loans will be deferred and begin in 2007. In addition, a "safety net" of up to an additional $93 million of funding was secured for Tower by Israel Corp. and Tower's banks.
For $8.7 million of the fifth milestone payment received from its strategic partners, Tower issued 2,916,951 ordinary shares at a price per share of $2.983, pursuant to a February 2003 amendment to the investment agreements.