Wolfspeed debt deal with Apollo ‘clear positive,’ says William Blair

William Blair views reports of Apollo Global Management (APO) leading a private debt placement with Wolfspeed (WOLF) as a “clear positive.” The deal provides Wolfspeed with $1.25B in immediate funding with an option for another $750M in additional funds later, the analyst tells investors in a research note. hile the deal will not come as a surprise, the terms are larger and better than expected, says the firm. It believes the funding “removes the risk of stranding utilization due to funding.” It also focuses Wolfspeed’s execution on Siler City in order to ramp up Mohawk Valley utilization beyond 20%, adds Blair. The firm keeps an Outperform rating on the shares.