Wolfspeed confirms $1.25B financing deal with Apollo Credit Funds

Wolfspeed (WOLF) “announced a $1.25B secured note financing from an investment group led by Apollo (APO), with an accordion feature for up to an additional $750 million. The financing supports the company’s previously announced U.S. expansion efforts and is a significant step toward achieving the company’s $6.5 billion global capacity expansion plan. Execution of Wolfspeed’s U.S. growth plan will accelerate adoption of silicon carbide across a wide array of end markets and support meaningful job creation in US semiconductor manufacturing. The 9.875% notes will mature in 2030 and are optionally prepayable by the company based on the terms of the indenture governing the notes. The investment was led by funds managed by Apollo’s ~$450 billion Credit business.” Shares of Wolfspeed are up 4.6% in pre-market trading at $51.74.