Tower Semiconductor Signs Agreement to Raise $60 Million

July 24, 2005 by Jeff Shepard

In a bid to heighten its production, Tower Semiconductor Ltd. (Migdal Haemek, Israel) has sigend a definitive amendment agreement with its banks to raise $60 million in funding. In May, the foundry signed a letter of intent stating that the banks would provide up to $30 million in funding, provided Tower raises a similar amount from investors.

To date, certain Tower shareholders have agreed to match $23.5 million toward this funding. The closing of the deal is subject to the receipt of investment undertakings totaling $23.5 million to invest in a rights offering. The agreement also updates some of Tower's financial ratios and covenants for upcoming quarters, in order to adjust them to the company's recent working plan.

"The agreements with our banks and shareholders enable us to focus on bringing our line of new customers, products, and value-added technology projects into the production phase," said Tower CEO Russell Ellwanger.