WOLF - Wolfspeed to get $2B in debt funding from Apollo-led group - reports

2023-06-25 18:05:49 ET

Semiconductor maker Wolfspeed Inc. ( NYSE: WOLF ) is receiving as much as $2 billion in debt financing for its U.S. expansion from a group of lenders led by private equity firm Apollo Global ( APO ).

The financing includes $1.25 billion in cash immediately available to Wolfspeed ( WOLF ), with another $750 million that can be drawn later, according to a Bloomberg report on Sunday, which cited a statement. News of the financing was first reported by The Information.

The debt financing comes after Wolfspeed's ( WOLF ) Chief  Financial Officer said during the company's Q3 earnings conference call in late April that the company was seeking $1 billion of additional non-government financing by the end of the calendar year to support and approximate $2 billion in capital expenditures in fiscal 2024.

The financing is structured as 7-year secured notes that carry a coupon of 9.875% that can be paid back after three years, according to Bloomberg.

More on Wolfspeed

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• Wolfspeed stock plunges as delays from Mohawk Valley facility hurts guidance
• Wolfspeed slips as J.P. Morgan downgrades on worries of short-term issues
• Wolfspeed stock slips as company set to apply for CHIPs Act funding

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