Replies to Post #100 onTower Semiconductor Ltd. (TSEM)

Replies to #100 on Tower Semiconductor Ltd. (TSEM)

12/16/05 9:18 AM

#101 RE: elis2000 #100

Eli,

I think the pressure was already there.When any
company announces a GiYus the share price
immediately decreases.
It is an automatic reaction.
In this case, when and if TSEM will raise the monies,
the share price will increase as their financial situation
will be improved, and the positive indication that the
market still believes in them.

Regards,

Dubi

midastouch017

12/18/05 3:06 AM

#102 RE: elis2000 #100

Tower gets watchdog nod for $50 million rights offering
18.12.05 | 08:53
Tower Semiconductors (Nasdaq: TSEM) announced late last week that it has received U.S. Securities and Exchange Commission permission to publish a prospectus for a $50 million rights offering.
The specialty foundry, based in Migdal Haemek, said the registration statement previously filed with the SEC and Israel Securities Authority is effective.

Last week Tower chief financial officer Oren Shirazi said the company means to change the terms of its loans from the banks, and in parallel to raise more money. It owes money chiefly to banks Hapoalim and Leumi.
Chief shareholders SanDisk, Alliance Semiconductors, Macronix International and The Israel Corporation (TASE: ILCO) have pledged $25.5 million. The Israel Corporation, which is controlled by the Ofer family, had said in the past that it would continue to infuse money to keep Tower afloat while the company reorganizes.
The money is earmarked for investment in Fab 2, on which Tower has already spent more than a billion dollars. Some will also be used for marketing and working capital.

All of Tower's shareholders, as well as holders of options to purchase Tower's ordinary shares under eligible employee share option plans, who own shares or eligible options as of 5:00 p.m. New York City time on December 20, 2005, the record date, will be entitled to participate in this $50 million offering, Tower said.
Each Tower shareholder and holder of eligible options will receive one right for each 138.98 ordinary shares and/or eligible options owned of record at 5:00 p.m., New York City time, on December 20, 2005.

Each right will entitle the holder to purchase at a subscription price of $100, one hundred of Tower's US dollar-denominated convertible debentures.
The debentures will be convertible into Tower's ordinary shares at a rate of one ordinary share per $1.10 aggregate principal amount of debentures. The conversion price is subject to downward adjustment following future financings in certain circumstances, as described in the prospectus.

Each debenture is of $1.00 in principal amount, and bears annual interest at the rate of 5%. The principal of the debentures, together with accrued interest, will be payable in one installment on January 12, 2012.

The rights will be exercisable during the 23-day period beginning after 5:00 p.m. New York City time (midnight, Israel time) on December 20, 2005 and ending on January 12, 2006 at 5:00 p.m., New York City time (midnight, Israel time).

The rights will be transferable and will be listed on the Nasdaq Capital Market under the symbol TSEMR and on the Tel Aviv Stock Exchange under the symbol TSEM.R2.

The rights will be listed for trading for a single day only on January 9, 2006. The debentures are expected to be listed on the Nasdaq Capital Market under the symbol TSEMG and on the Tel Aviv Stock Exchange under the symbol TSEM.C2, as soon as practicable after January 12, 2006 in accordance with rules of these exchanges, Tower said.
Certain of Tower's major shareholders have committed to purchase from Tower $25.5 million principal amount of convertible debentures through the rights offering.

http://www.haaretz.com/hasen/spages/659205.html

Dubi