NEWPORT BEACH, USA & MIGDAL HAEMEK, ISRAEL: TowerJazz has signed an agreement with its lender, Wells Fargo Capital Finance, part of Wells Fargo & Company, to extend its credit lines from September 2011 to September 2014.
Under the agreement, the four-year lines totaling $45 million will bear an interest rate equal to, at the Company’s option, the USD LIBOR rate plus a margin ranging from 2.25 percent to 2.75 percent per annum, or the lender’s prime rate plus a margin ranging from 0.50 percent to 1 percent. As of March 31, 2010 and December 31, 2009, outstanding borrowings under Wachovia Capital Finance Corporation (Western), now part of Wells Fargo Capital Finance, were $22.0 and $27.0 million, respectively.
As previously announced, the company is continuing to work with its institutional bondholders and Israeli lender banks, to restructure and re-finance its long-term debt with a view towards further strengthening its balance sheet and debt structure, as well as enabling its business plan growth.
Russell Ellwanger, Tower's CEO, said: "I am extremely pleased that we have extended our relationship with Wells Fargo Capital Finance, one of the largest asset-based lenders in the US. Following our June 2, 2010 release, this announcement is the second with more to come on executing a comprehensive debt restructuring plan as we are committed to increasing shareholder value. I am very pleased to end today, the second quarter, with this important financial release.”
“Following a strong, four-year relationship, we are pleased to provide this three-year extension to the facility’s maturity date,” said Andy Robin, head of the Business Finance division of Wells Fargo Capital Finance. “We look forward to providing support to the company as it achieves its strategic goals.”