Tower committed to raising $20 million by end of February

Tower Semiconductor (Nasdaq:TSEM) is committed to raising $20 million by the end of February as part its credit agreement with Bank Hapoalim and Bank Leumi, according to reports the company released last week.

The banks allocated Tower a $500 million credit line for establishing its Fab 2 in Migdal Ha'emek.

TheMarker learned that Tower and the banks agreed that the company can raise the capital in a variety of ways: a stock issue, an offering of convertible bonds and option warrants, exercise of options by banks and Tower workers, cash flow from the Fab 1 activity, or selling holdings in affiliates.

The commitment excludes investment by Tower's four strategic partners, SanDisk Corporation (Nasdaq:SNDK), Alliance Semiconductor (Nasdaq:ALSC), Macronix (Nasdaq:MXICY), and QuickLogic (Nasdaq:QUIK). Also excluded are funds the company received from the Investments Center of the Ministry of Industry and Trade.

The capital that Tower raised last month is intended to meet a prior commitment for raising $40 million by January 31, 2002. Tower fulfilled this commitment.

The agreement with the banks says that Tower has to raise $144 million by the end of 2003, $40 million of which has already been raised.

Tower has to raise $84 million over the coming 23 months, dbove and beyond the capital it has to raise by the end of February.

Tower is controlled by the Israel Corporation.

If you liked this article you might like

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Nessuah Zannex: Rating cut's main damage is to banks' images to foreigners

Yes recruitment rate down to 6,000 a month

Yes recruitment rate down to 6,000 a month

Cadence to invest in Israeli startups

Cadence to invest in Israeli startups

Court grants Mentergy 40-day stay of proceedings

Court grants Mentergy 40-day stay of proceedings

Leader & Co sees Discount shifting to profit in Q3

Leader & Co sees Discount shifting to profit in Q3