Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 67

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 67
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 lease, with a term until March 2032.

As of December 31, 2024 and 2023, the total outstanding capital
lease liabilities for fixed assets were $73.5 million and $118.3 million, respectively, of which $24.8 million and $40.3 million, respectively,
were included under current maturities of long-term debt. The available lease lines as of December 31, 2024 and 2023 were approximately
$10 million and $45.0 million, respectively.

Loans from Japanese Financial Institutions

In December 2021, TPSCo refinanced its then existing loan with
an 11 billion JPY (approximately $70 million as of December 31, 2024) asset-based loan with a consortium of financial institutions consisting
of (i) JA Mitsui Leasing, Ltd., (ii) Mitsubishi HC Capital Inc., (iii) Taishin International Bank Co., Ltd. Tokyo Branch, and (iv) BOT
Lease Co. Ltd. (the “2021 JPY Loan”). The 2021 JPY Loan carries a fixed interest rate of 1.95% per annum with principal payable
in seven semiannual payments from December 2024 until December 2027. The 2021 JPY Loan is secured mainly by a lien over the machinery
and equipment of TPSCo located in the Uozu and Tonami facilities.

In September 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 J