Wednesday, Jazz Technologies, Inc. (JAZ), a semiconductor equipment company, announced that Tower Semiconductor Ltd. (TSEM) has signed a memorandum of understanding, or MOU, with its lender banks and with Israel Corp. for the restructuring of certain of its debt.
According to Tower, the MOU provides for a $250 million reduction in debt, a $250 million increase in shareholders' equity, deferral of principal and interest payments and a commitment of additional investment by Israel Corp., a major shareholder of Tower.
The Newport Beach, California-based Jazz had earlier announced that it had signed a definitive merger agreement with Tower Semiconductor to acquire all of the outstanding shares of Jazz in a stock-for-stock transaction.
JAZ is currently trading at $1.19, up $0.05 or 4.40%, on a volume of 17,251 shares, at the AMEX.
TSEM is currently trading at $0.75, up $0.07 or 10.25%, on a volume of 62,306 shares at the NASDAQ.
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