Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 10

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 10
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, 2024, we had approximately $181 million of consolidated
principal amount of debt outstanding, comprised as follows: (1) TPSCo loans in the total principal amount of approximately $100 million,
of which approximately $81 million carries a fixed interest rate of 2% per annum, with principal scheduled to be repaid between 2027 and
2030 and approximately $19.0 million carries a fixed interest rate of 1.95% per annum, with principal scheduled to be repaid in 2025;
(2) Tower’s subsidiaries’ capital lease agreements for machinery and equipment with JA Mitsui Leasing, with aggregate outstanding
lease liabilities of approximately $45 million, carrying a fixed interest rate of up to 1.95% per annum, payable between 2025 and 2028;
and (3) Tower and its subsidiaries’ other capital and operating leases, with aggregate outstanding lease liabilities of approximately
$36 million, payable between 2025 and 2032. Carrying such an amount of long-term debt may have negative consequences on our business,
including:

  limiting our ability to fulfill our debt obligations and other liabilities;  

  requiring the use of a portion of our cash to service our indebtedness rather than investing our cash to fund our strategic growth  

  increasing our vulnerability to adverse economic and industry conditions;  

  limiting our ability to obtain additional financing;  

  limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we compete;  
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  placing us at a competitive disadvantage with respect to less leveraged competitors and competitors that have better access to capital  

  volatility in our non-cash financing expenses due to increases in the fair value of our debt obligations;  
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  fluctuations of the payable amounts in USD of the JPY-denominated loans and capital lease agreements or other expenses denominated  

  potential enforcement by the lenders of their liens against our respective assets, as applicable, if an event of default occurs.  

In order to service our debt, the applicable interest it carries
and other liabilities and obligations and/or improve its terms and conditions and/or invest in strategic opportunities for growth and/or
business development activities, in addition to our cash on hand and expected cash flow generation from operating activities, we may decide
to obtain funds from additional sources including debt vehicles and