TowerJazz Signed Definitive Agreement To Re-Finance Its Bank Debt with A $111M Term Loan Maturing 2018

TowerJazz, the global specialty foundry leader, today announced that it re-financed its existing bank debt, replacing the present loans previously scheduled to be repaid during the coming two years, with a $111 million term loan maturing by October 2018. This re-financing substantially reduces the principal payments for 2015 and 2016 from $101 million to $24 million. Interest on the loans is USD LIBOR rate plus 3.9% per annum. The schedule of the $111 million loans is $10 million principal payment during each of 2014 and 2015, $14 million during 2016, $56 million during 2017 and $21 million during 2018. The agreement with the banks also contains a mechanism for prepayment of principal based on excess cash flow the company may incur, as well as customary fees and financial ratios which are aligned with the company's business plan. “After performing due diligence on our business plans and financial forecasts, the lending banks have demonstrated their belief in the company by providing this long-term loan,” said Russell C. Ellwanger, TowerJazz's CEO. “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.”