Semiconductor manufacturer TowerJazz (Nasdaq: TSEM; TASE: TSEM) completed the public phase of its bond issue. Together with sales to institutional investors, TowerJazz raised $100 million (about NIS 380 million) in Series F debentures.
The public tender attracted excess demand of 150%.
The series F convertible debentures are linked to the US dollar, bear annual interest of 7.8%, and are convertible into ordinary shares beginning September 2012 at about a 20% premium over the company’s ordinary shares.
The placement agents acted in the transaction were Leader Issuances (1993) Ltd., Clal Finance Underwriting Ltd, Leumi Partners Underwriters Ltd., Apax Underwriting Management and Issuances Ltd., Poalim IBI Underwriting and Issuances Ltd. and Barak Capital Underwriting Ltd.
TowerJazz CEO Russell Ellwanger said, "With this $100 million fund raising, we completed the comprehensive debt restructure carried out over the past several months. This restructure comprised the extension of the $45 million Wells-Fargo credit lines, $80 million Jazz level bonds exchange to bonds due in 2015, $50 million pay down and restructure of the remaining $160 million Israeli banks debt to a long term loan and this deal. The composite has created a new balance sheet with zero bank loans’ principal due during the coming 3 years, servable debt ratios and a cash balance which will enable quick execution on synergistic business opportunities."
Tower does business as TowerJazz since acquiring Jazz in 2008.
Tower shares closed yesterday at $1.36, giving a market cap of $313.84 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2010
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