Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 167

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 167
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2023, TPSCo entered into a term loan agreement with
JA Mitsui Leasing Ltd. for an additional 3.5 billion JPY (approximately $22 million as of December 31, 2024) term loan (the “2023
JPY Loan”). The 2023 JPY Loan carries a fixed interest rate of 1.95% per annum with principal payable in seven semiannual payments
from September 2024 until September 2027. The 2023 JPY Loan is secured by a second lien over the machinery and equipment of TPSCo located
in the Uozu and Tonami facilities.

In December 2024, TPSCo entered into an agreement with certain
of its lenders to refinance the 2021 JPY Loan and 2023 JPY Loan with a new 14.5 billion JPY (approximately $92 million as of December
31, 2024) asset-based loan (the “2024 JPY Loan” and together with the 2021 JPY Loan and 2023 JPY Loan, the “ JPY Loans”).
As of December 31, 2024, 12.5 billion JPY (approximately $79 million) of the 2024 JPY Loan was drawn, of which 11.5 billion JPY (approximately
$73 million) was used to repay part of the 2021 JPY Loan and 2023 JPY Loan, and 3 billion JPY (approximately $19.0 million) remained outstanding
under the 2021 and 2023 JPY Loans. As a result, a total principal amount of 15.5 billion JPY (approximately $100 million) was outstanding
under all of the JPY Loans as of December 31, 2024.

In accordance with the terms of the 2024 JPY Loan agreement, during
the first half of 2025, (i) the 3 billion JPY (approximately $19 million) total principal amount, which remained outstanding as of December
31, 2024 under the 2021 JPY Loan and 2023 JPY Loan, is scheduled to be repaid, and (ii) an amount of 2 billion JPY (approximately $13
million), which remained available as of December 31, 2024 under the 2024 JPY Loan, is scheduled to be withdrawn.

The lenders under the 2024 JPY Loan are a consortium of