Shareholders to receive one right for every 44 ordinary shares held
By Devika Patel
Knoxville, Tenn., June 3 - Tower Semiconductor Ltd. said it will conduct a rights offering to raise about $24 million. Stakeholders as of the record date of June 13 are eligible to participate.
The company will offer rights exercisable at $20.00 apiece. Investors will receive one right for every 44 ordinary shares held. Tower expects to issue about 1.2 million rights.
Each right will entitle the holder to purchase four ordinary shares, six short-term series 8 warrants, exercisable for three weeks, and five series 9 warrants, exercisable until June 27, 2017.
The series 8 warrants are exercisable at $5.00 per share, and the series 9 warrants are exercisable at $7.33 per share. The strike prices are a 19.36% discount and 18.23% premium to the May 31 closing share price of $6.20.
The rights are exercisable beginning on June 13 and ending on June 27.
Israel Corporation Ltd. has committed to invest about $17 million.
Tower Semiconductor is a Migdal Haemek, Israel-based independent specialty foundry that delivers customized services in a variety of advanced CMOS technologies.
| Issuer: | Tower Semiconductor Ltd.
|
| Issue: | Common stock
|
| Amount: | $24 million (approximate)
|
| Rights: | 1.2 million (approximate)
|
| Price: | $20.00
|
| Warrants: | Series 8 warrants, series 9 warrants
|
| Warrant expiration: | Three weeks (for series 8), June 27, 2017 (for series 9)
|
| Warrant strike prices: | $5.00 (series 8), $7.33 (series 9)
|
| Investor: | Israel Corporation Ltd. (for about $17 million)
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| Pricing date: | June 3
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| Stock symbol: | Nasdaq: TSEM
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| Stock price: | $6.20 at close May 31
|
| Market capitalization: | $148.94 million
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