Tower Semiconductor (TSEM) Signs Memorandum of Understanding to Restructure Debt for Jazz (JAZ) Acquisition

August 20, 2008 8:26 AM EDT

Jazz Technologies, Inc. (AMEX: JAZ), which previously announced that it had signed a definitive merger agreement by which Tower Semiconductor Ltd. (NASDAQ: TSEM) will acquire all of the outstanding shares of Jazz in a stock-for-stock transaction, today announced that Tower has informed Jazz that Tower has signed a memorandum of understanding (MOU) with its lender banks and with Israel Corporation, a major shareholder of Tower, for the restructuring of certain of its debt. Tower states that the terms of the MOU are subject to, among other conditions, the signing of definitive documentation and the receipt of certain approvals.

As previously announced, Tower's registration statement on Form F-4, containing information relating to its proposed merger with Jazz, was declared effective by the Securities and Exchange Commission, clearing the way for a Jazz stockholder vote on the merger. Jazz has set September 17, 2008 as the date for the special meeting of its stockholders to vote on the proposal to approve and adopt the Agreement and Plan of Merger and Reorganization with Tower Semiconductor, to be followed by the closing of the merger.[SM]

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