TEL AVIV, June 19 (Reuters) - Israeli chip manufacturer TowerJazz said a five-year agreement with JA Mitsui Leasing, a Japanese financing institute, has been signed to provide TowerJazz Panasonic Semiconductor Co with a loan of 8.8 billion Japanese Yen ($85 million).
The loan will carry annual interest of TIBOR (Tokyo Interbank Offered Rate) plus 2 percent per annum, will mature in mid 2019 and will be repaid in seven equal semi-annual installments, which will start two years after signing.
The loan will come in lieu of an 8.8 billion yen bridge loan received from Panasonic, TowerJazz said on Thursday.
TowerJazz has a 51 percent stake in a joint venture with Panasonic Corp, which was launched in April and under which Panasonic transferred three factories for the production of semiconductors for cars and other products. (Reporting by Tova Cohen)