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