The bonds will be convertible into shares beginning in September 2012 at a 20% premium over the share's market price.
Specialty foundry TowerJazz (Nasdaq: TSEM; TASE: TSEM) has received NIS 295.4 million ($82 million) in early commitments from Israeli institutional investors to invest in the company new bonds. The public tender for the bond will be held tomorrow.
The new Series F bond will be listed on the Tel Aviv Stock Exchange (TASE). The bonds mature in two equal installments on December 2015 and December 2016. The bonds are denominated in shekels and will be linked to the shekel-dollar exchange rate. They will bear an annual interest rate of 7.8%, payable semi-annually installments beginning at the end of this year. The bonds will be convertible into shares beginning in September 2012 at a 20% premium over the share's market price.
Tower does business as TowerJazz since acquiring Jazz Semiconductor Inc. in 2008.
TowerJazz's share closed at $1.42 yesterday on Nasdaq, giving a market cap of $133 million. The share price fell 1% in morning trading on the TASE today to NIS 5.02.
Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2010
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