TowerJazz and GE Capital sign loan agreement

TowerJazz has signed a definitive credit line agreement with GE Capital to provide TowerJazz’s Nishiwaki facility with a credit line of up to 4 billion Japanese Yen (approximately $50 million). Loans to be obtained under this credit line will carry an interest of the higher of TIBOR rate or LIBOR rate plus 2.6% per annum and will be due for repayment in 2015. Availability under the credit line is calculated according to certain formulas set forth in the agreement and is capped at $30 million until June 2013. Mr. Clark D. Griffith, Senior Vice President, GE Capital Japan, said, "We are pleased and excited to provide this asset based loan agreement to TowerJazz and we look forward to supporting them as they achieve their strategic goals. GE Capital is one of the major providers of asset based loans in the world and plans to grow its asset based loan business in Japan and Asia Pacific.” Oren Shirazi, TowerJazz chief financial officer and senior VP, said, "I am extremely pleased that we have engaged the finance division of GE, one of the largest financial entities in the world. We believe this agreement and the previously announced government Cap-Ex grant approval, together with the new customers that we are engaging for manufacturing in the Nishiwaki fab, are strong enablers for our business and operational flexibility allowing our growth strategy in Japan and worldwide.”