Israel's TowerJazz to offer more 7.8% convertibles in public tender

By Marisa Wong

Madison, Wis., Feb. 21 - Tower Semiconductor Ltd. (TowerJazz) is planning a public tender on Feb. 23 to issue additional 7.8% series F bonds due December 2015 and 2016, according to a 6-K filed Tuesday with the Securities and Exchange Commission.

TowerJazz said it already received commitments for about NIS 240 million of the series F bonds in an institutional tender on Monday.

Institutional investors committed to purchase 207,927 units. Each unit consists of NIS 1,250 principal amount of series F bonds and 100 warrants to purchase ordinary shares. The warrants may only be exercised between March 2014 and March 2016. The exercise price will be a 20% premium over the average market price during a 15-day period prior to the exercise.

The bonds are denominated in new Israeli shekels and linked to the dollar.

The bonds are convertible into ordinary shares beginning September 2012 at a 20% premium over the market price of the shares.

The Migdal Haemek, Israel-based wafer foundry first issued the series F bonds in October 2010.

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