TowerJazz gets $111 million four-year term loan at Libor plus 390 bps

By Susanna Moon

Chicago, Oct. 27 – TowerJazz said it refinanced its bank debt with a $111 million term loan due October 2018.

Interest will be Libor plus 390 basis points.

The loans require principal payment of $10 million in 2014, $10 million in 2015, $14 million in 2016, $56 million in 2017 and $21 million in 2018.

The agreement also allows for prepayment of principal based on excess cash flow.

The term loan replaces the loans that would have been due for repayment in the next two years, according to a company press release.

The refinancing substantially reduces the principal payments for 2015 and 2016 to $24 million from $101 million, the release noted.

“Built upon the foundation of very strong organic growth and the strategic, financial and operationally accretive nature of the Panasonic transaction, this term loan maturing end of 2018 will further enhance our positioning in the market and enable us to more strongly invest in our strategic plans,” Russell C. Ellwanger, TowerJazz’s chief executive officer, said in the press release.

Tower Semiconductor Ltd. and its fully owned U.S. subsidiary Jazz Semiconductor, Inc. operate collectively under the brand name TowerJazz, the global specialty foundry leader. TowerJazz manufactures integrated circuits and is based in Migdal Haemek, Israel.

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