Boston, MA 12/19/2013 (wallstreetpr) – Wells Fargo & Co (NYSE:WFC) is one of the four largest banks in the U.S. The company operates in a variety of segments and also through subsidiaries. It is through one of its subsidiaries called Wells Fargo Capital Finance that it has announced another agreement with Tower Semiconductor Ltd. (USA) (NASDAQ:TSEM) which increases the latter’s credit line with the bank.
Under the fresh agreement announced this week, Tower will now have $70 million credit line from the bank and this agreement runs through December 2018. Initially the two companies signed an agreement for a $45 million credit line which ends in September 2014. So far the outstanding borrowing balance from the earlier agreement is about $19 million.
This borrowing agreement allows Tower to access credit line for its projects at reduced interest rates and the companies have been able to build a cordial customer-client relationship over the years through the same.
Wells Fargo Capital Finance is one of the largest lenders in the U.S. Commenting on the new deal Tower CEO Russell Ellwanger noted that they are pleased that Wells Fargo Capital Finance has agreed to extend their credit line from $45 million to $70 million.
Wells Fargo & Co (NYSE:WFC) presents a strong and knowledgeable management team in all its business segments and the company’s SVP Stacy Gottlieb noted the same when announcing the fresh deal with Tower.
Tower Semiconductor is a specialty foundry chipmaker whose business has been gaining importance in the supply of integrated circuits (ICs). The company needs the low-rate credit line it receives from WFC to boost its manufacturing operations.
On its part, Wells Fargo & Co (NYSE:WFC) is seeking to boost its borrowing books to increase its interest income. The bank’s stock currently trades at around $44.93 per share. The market values the company at $236.67 billion and it has 5.27 billion outstanding shares
