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TowerJazz Panasonic, JA Mitsui sign definitive five-year term loan agreement

TowerJazz announced the signature of a definitive five year term loan agreement with JA Mitsui, a Japanese leading financing institute, to provide TowerJazz Panasonic Semiconductor, or TPSCo, with a term loan of approximately $85M. The loan will carry an annual interest of the TIBOR rate plus approximately 2% per annum, will mature in mid 2019 and will be repaid in seven equal semi-annual installments which will commence two years after signing. The TIBOR rate applicable to the interest payments will be the six month TIBOR. The loan will come in lieu of an 8.8B Yen bridge-loan received from Panasonic, as presented in the company’s balance sheets as of March 31. TowerJazz Panasonic Semiconductor is a Joint Venture, 51% owned by Tower Semiconductor (TSEM) and 49% owned by Panasonic (PCRFY).