Financing ·
Wolfspeed enters conditional $1.5B loan commitment from U.S. Department of War to refinance debt and fund domestic semiconductor expansion
WOLFWolfspeed, Inc.
Wolfspeed announced it has entered into a conditional commitment letter with the U.S. Department of War’s Office of Strategic Capital for a senior secured delayed-draw term loan facility of up to $1.5 billion. The financing, expected to have a 30-year maturity, will be used to refinance outstanding first lien senior secured notes due 2030 and fund domestic silicon carbide and gallium nitride production projects. The deal is subject to substantial conditions, including due diligence, congressional appropriations, and the issuance of warrants to the DoW representing up to 7.5% of fully diluted equity. Wolfspeed operates in the semiconductor industry, specializing in silicon carbide materials and wide bandgap power devices.