Wolfspeed Announces $1.25 Billion Funded Secured Notes Led by Apollo Credit Funds
26 Junho 2023 - 9:00AM
Business Wire
Investment Supports Domestic Capacity Expansion
Plans
Wolfspeed, Inc. (NYSE: WOLF), the global leader in silicon
carbide technology, today announced a $1.25 billion secured note
financing from an investment group led by Apollo (NYSE: 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.
“The group’s commitment to Wolfspeed further validates the
importance of silicon carbide to the global energy transition,”
said Gregg Lowe, president and chief executive officer of
Wolfspeed. “This important step in our financing provides
significant capital to scale up near-term operations at our Mohawk
Valley Fab and construction of our Siler City materials facility to
help us capture the growing silicon carbide market opportunity. The
financing positions Wolfspeed to continue to lead the growth of the
industry and focus on the execution of our vertically integrated
strategy to meet growing demand.”
“Our agreement with Apollo and its capital partners achieves our
near-term funding targets while prioritizing our shareholders with
a new, non-dilutive source of financing,” said Neill Reynolds,
chief financial officer of Wolfspeed. “Apollo and its capital
partners’ investment follows an extensive review of our business
and demonstrates their conviction in our team, operating plan and
trajectory.”
“Apollo is pleased to provide a dynamic and flexible credit
solution to Wolfspeed as it significantly expands its silicon
carbide manufacturing capacity. The company’s growth plan is
designed to deliver critical silicon carbide products for a range
of automotive and industrial uses, and support sustainability goals
with market-leading technology,” said Joseph Jackson, Partner,
Apollo Credit. “With the help of our capital partners, we have
crafted a facility that can provide up to $2 billion to ramp the
company’s expansion plans.”
Wells Fargo & Company (NYSE: WFC) and Morgan Stanley &
Co. LLC served as financial advisors to Wolfspeed and Latham &
Watkins LLP and Smith, Anderson, Blount, Dorsett, Mitchell &
Jernigan, L.L.P. served as legal counsel to Wolfspeed. Paul, Weiss,
Rifkind, Wharton & Garrison LLP served as legal counsel to the
Apollo funds and the noteholder group. Apollo Capital Solutions
provided capital markets and structuring advisory services on the
transaction.
About Wolfspeed:
Wolfspeed (NYSE: WOLF) leads the market in the worldwide
adoption of silicon carbide and GaN technologies. We provide
industry-leading solutions for efficient energy consumption and a
sustainable future. Wolfspeed’s product families include silicon
carbide materials, power devices and RF devices targeted for
various applications such as electric vehicles, fast charging, 5G,
renewable energy and storage, and aerospace and defense. We unleash
the power of possibilities through hard work, collaboration and a
passion for innovation. Learn more at www.wolfspeed.com.
Twitter: @Wolfspeed LinkedIn: @Wolfspeed
Wolfspeed® is a registered trademark of Wolfspeed, Inc.
Forward Looking Statements:
This press release contains forward-looking statements by
Wolfspeed involving risks and uncertainties, both known and
unknown, that may cause Wolfspeed’s actual results to differ
materially from those indicated. Actual results may differ
materially due to a number of factors, including risks associated
with Wolfspeed’s expansion plans, including, among other things,
design and construction delays and cost overruns, timing and amount
of government incentives actually received, and delays or other
difficulties in preparing for and ramping production; the continued
pace of the transition to using Silicon Carbide devices in electric
vehicles and other industrial uses; Wolfspeed’s ability to develop
and design Silicon Carbide devices that will continue to improve
performance in broad markets; the risk that Wolfspeed may be unable
to manufacture its products with sufficiently low cost to offer
them at competitive prices or with acceptable margins; the risk
that demand for Silicon Carbide will not grow as Wolfspeed expects;
the rapid development of new technology and competing products that
may impair demand or render Wolfspeed’s products obsolete; and
other factors discussed in Wolfspeed’s filings with the Securities
and Exchange Commission, including its report on Form 10-K for the
year ended June 26, 2022, and subsequent filings. For additional
product and company information, please refer to
www.wolfspeed.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230626058225/en/
Media Relations Contact:
Melinda Walker Director, Corporate Communications 818-261-4585
Media@wolfspeed.com
Investor Relations Contact:
Tyler Gronbach VP, External Affairs 919-407-4820
investorrelations@wolfspeed.com
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